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As a further step to increase its international production footprint, Audi also announced that it would begin production in Brazil from 2015. The Audi A3 sedan and the Audi Q3 will be produced in Curitiba in Southern Brazil. The car market in Brazil is booming and the premium segment is growing particularly strongly. With production in Brazil, Audi wants to have a basis for further growth in the region. Starting in 2014, Audi's competitor BMW is produces in its own plant in Brazil. These moves are certainly to circumvent the high tariffs on imported cars and take advantage of the tax incentives given by Brazil for such investments.
Production Together with Volkswagen Production will take place in a Volkswagen brand production plant but Audi will invest in a specific production line for its models. Audi also intends to buy locally. Up to 35% of the sourced parts for the A3 should come from Brazil. To achieve this objective, Audi has started to build up relationships with Brazilian suppliers.
Discuss the features of the six global sourcing strategy.