CAROLINA FINANCE: What’s the status of Audi’s $1.9 billion financing?
The news comes a day after the automaker announced a $1 billion loan from China to help the automakers revive its operations in North Carolina.
The deal will allow Audi to tap into $1 trillion in funding from China, which was the main lender to the automaking giant during its bankruptcy in 2011.
With the loan, Audi can take on more than $1,000 per car, said Steve Schilling, chief financial officer for Audi North America.
As part of the deal, Audi will invest $150 million in North Carolinas plant, as well as expand the facility at the plant and invest $80 million in research and development.
A spokesman for the North Carolina Economic Development Authority said the agency had not yet received the loan and would not comment.
Carlyle Automotive, a North Carolina-based maker of commercial and passenger vehicles, is expected to receive $300 million in a $5 billion deal, which would include the financing of a new factory in Charlotte.
In addition to financing Audi, the deal could provide a boost for Carlyle’s Charlotte business, said Jim Graziano, Carlyle North America president.
“I think it’s going to be a big deal for the Charlotte area,” he said.
Analysts expect the financing to help Carlyle grow in the region and generate $200 million to $300 in new investment, which is in line with previous estimates from the automagear firm.
Other deals are expected to be announced over the coming weeks.
Last month, Ford said it would partner with Ford Motor Co. to build a new plant in Charlotte that could employ about 1,000 people.
The investment, to be funded by Ford, would be paid for by a $400 million government loan.
Tesla Inc., which has been a key partner in the auto industry for years, is in talks to build its own factory in North Carrolton, according to a person familiar with the matter.
Automakers and automakers are increasingly working to diversify their supply chains and to improve the quality of their vehicles, which have long been plagued by a variety of problems, including engine overheating and fuel leaks.
Audi is expected this year to unveil a new model with a bigger, more powerful engine and larger, more fuel-efficient, battery-electric battery pack, according a person with knowledge of the matter who spoke on the condition of anonymity.
On Wednesday, Audi said it was working on the production of an electric sports car, which could start as early as 2020.
It has been working on an electric car for more than 20 years, and it has been developing the new electric version since the company was founded in 1994.
At a news conference in Charlotte, Bentley chief executive Mark Rees said Audi would continue to expand its North Carolina operation, with the new factory opening next year.
Ford has been building its North Carroon plant in Raleigh, North Carolina, which employs about 400 people.