According to media reports, Audi is planning to produce electric vehicles in the United States to avoid newly imposed tariffs.
On May 3, the Donald Trump administration began enforcing a 25% tariff on vehicles manufactured outside the United States. In response, Audi is considering producing EVs at one of its parent company Volkswagen Group's three production sites in the U.S. to circumvent the high tariffs. Currently, most of the Audi vehicles sold in the U.S. are imported from Europe and Mexico, and are now subject to these tariffs.
Sources told German media that Audi may leverage Volkswagen Group's U.S. manufacturing facilities to achieve this goal. One potential option is producing the Q4 E-tron or its future versions at Volkswagen's Chattanooga plant in Tennessee. This factory is already producing the Volkswagen ID.4, which shares the same MEB electric platform with the Q4 E-tron.
Audi is also reportedly considering manufacturing the Q8 E-tron at the under-construction Scout Motors plant in Columbia, South Carolina. This mid-size electric SUV was initially planned for production in Mexico, but due to Trump's tariff policy, South Carolina is now seen as a more cost-effective alternative. Additionally, Audi is still seeking a U.S. production site for the upcoming Q6 E-tron, its third electric SUV model.
So far, Audi has not released any official announcements, but the company has been open about its ambition to expand its market share in the U.S. A spokesperson for Audi stated, "We are currently exploring various options. We are confident that we will reach a detailed decision in coordination with the Group by the end of the year."
During a May 5 earnings call, Audi CFO Jürgen Rittersberger confirmed that the company plans to introduce 10 models in the U.S. and will finalize production locations by the end of 2025.
Previously, Volkswagen Group CEO Oliver Blume also indicated that the company might produce some Audi models in the U.S. to avoid the Trump administration's tariffs.
Blume said, "We have an ambitious development strategy with exciting projects tailored for the U.S. market, which are very appealing to American customers. We are currently in constructive negotiations with the U.S. government." He added that for Audi, producing vehicles in the United States "will be a growth initiative within our strategic framework."
