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Italy's Cromodora to build exclusive wheel plant for Audi, Volkswagen

Italian car wheels maker Cromodora Wheels SpA has agreed to build a new wheel plant exclusively for Audi AG and the wider Volkswagen AG Group, Audi said in a Jan. 16 release.

The plant will be based in Eastern Europe, with production slated to commence in 2023.

Financial terms of the deal were not disclosed, but Audi said the cooperative agreement is valid for up to 10 years.

The planned facility is expected to use green power, secondary materials, and reduced quantities of fresh water, as both Cromodora and Audi are looking to make it sustainable and resource-efficient.

Both companies also agreed on employing transparent, optimized cost structures, in which both Cromodora and Audi will share risks associated with the plant, such as when the costs of raw materials rise.