Audi Explores US Production to Dodge Tariffs
Audi is in the process of exploring options to manufacture its electric vehicles in the United States to avoid new tariffs imposed by the US government. The Trump administration recently implemented a 25% tariff on electric vehicles imported from outside North America, increasing the cost of importing vehicles from Europe and Mexico for Audi.
According to sources from Germany’s Automobilwoche, Audi is considering utilizing Volkswagen Group’s existing facilities in the US to produce its electric vehicles. One possibility is to produce the Audi Q4 E-tron, or its future version, at VW’s Chattanooga, Tennessee plant. This factory already produces the VW ID.4, which shares the same MEB electric platform as the Q4 E-tron.
Another option being considered is the Scout Motors factory under construction in Columbia, South Carolina, for the production of the Q8 E-tron. Initially planned for production in Mexico, Audi is now looking at South Carolina as a more cost-effective alternative due to the new tariffs.
For the upcoming Q6 E-tron, Audi is still searching for a suitable production site in the US. While no official decisions have been made yet, Audi is actively working to expand its presence in the US. A spokesperson mentioned, “We are currently examining various scenarios and are confident that we will be able to decide on the specific details in consultation with the Group before the end of this year.”
During an earnings call on May 5, Audi CFO Jürgen Rittersberger confirmed plans to launch 10 models in the US and finalize production locations by the end of 2025.
As Audi navigates the challenges posed by tariffs, the move towards US production reflects the company’s commitment to the American market. By localizing production, Audi aims to mitigate the impact of tariffs and strengthen its position in the growing electric vehicle segment.
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