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UPDATE 1-Audi plans 60,000 A3 sportbacks per year

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BUDAPEST, June 24 (Reuters) - German carmaker Audi plans an annual output of some 100,000 A3 subcompacts, of which 60 percent will be the new A3 sportback model, Chairman Martin Winterkorn said on Thursday.

"The annual output plan is some 100,000 A3s, of which 60 percent would be sportbacks," Winterkorn told Reuters in Budapest. "The plan is of course flexible, depending on demand," he added.

Winterkorn was speaking during a visit to Budapest's Technical University after which he will also visit Audi's engine plant in Gyor, west Hungary.

The A3 sportback was conceived as a direct competitor to rival German carmaker BMW's series one. Winterkorn said production of A3 sportback began two weeks ago.

Referring to earlier rumours that Audi could close its Gyor plant, Winterkorn reaffirmed Audi's commitment to Hungary.

"We plan an output of between 1.4 and 1.5 million engines this year and this is Audi's third most important production site after Ingolstadt and Neckarsulm," he said.

He added, however, that Audi was also looking to establish other production sites further east in Europe.

"As all the other carmakers, we are of course considering production further east," he said.

Audi Hungaria, the country's largest exporter, produced 1.35 million engines in 2003.