According to media reports, Audi, the premium brand under the Volkswagen Group, is considering building a new factory in the United States. This move is one of several options the company is evaluating to ease tensions arising from a tariff dispute with President Trump.
Reports indicate that Audi is exploring the possibility of setting up a plant in the southern U.S., which is among the more costly options being considered. Company insiders estimate the investment could reach up to €4 billion (approximately $4.6 billion USD).
An Audi spokesperson confirmed the company's intention to further expand its footprint in the U.S. market. In an email statement, the spokesperson said: "We are comprehensively evaluating multiple feasible options and will finalize the specific implementation plan in coordination with the (Volkswagen) Group later this year." This statement reaffirms Audi's previously stated position.
Currently, Audi does not have its own manufacturing base in the United States. However, its parent company, Volkswagen Group, already operates a vehicle assembly plant in Chattanooga, Tennessee, and is building a second facility near Columbia, South Carolina. Audi's German rivals, BMW and Mercedes-Benz, also maintain major production facilities in the U.S.
An industry representative noted that the Trump administration's broad tariff policies have cost export-oriented German automakers hundreds of millions of euros.
Sources revealed that BMW, Mercedes-Benz, and Volkswagen are in talks with the U.S. government over a potential import tariff agreement. These automakers are seeking to use their investments and exports in the U.S. as leverage to reduce the negative impact of tariffs.
Mercedes-Benz Group CEO Ola Kaellenius recently disclosed that the company has proposed a reciprocal automotive tariff exemption mechanism between the U.S. and the EU. Under this proposal, for every American vehicle allowed duty-free entry into the European market, EU automakers would receive an equivalent number of duty-free export slots to the U.S.
Kaellenius stated: "We have submitted this proposal to both the U.S. and the EU. It could form a viable part of transatlantic negotiations." He added that, if passed, such an agreement could set a precedent and serve as a model for other industries.
