German automotive manufacturers Audi and Porsche are reportedly considering setting up production in the United States. According to the German business daily “Handelsblatt”, citing several sources familiar with the background, the Volkswagen factory in Chattanooga is the most likely production site, which would need to be significantly expanded. There are several scenarios, it is said, but none have been decided on yet. The company reportedly wants to wait for the clarification of possible tariffs on imports to the US before making a decision.
Audi and Porsche declined to comment on the plans when asked by the “Handelsblatt”. A company spokesperson referred to the ongoing planning round at VW and stated on behalf of the two brands: “We do not comment on speculation.”
US President Donald Trump has repeatedly announced plans to impose tariffs on auto imports from Europe and the neighboring countries of Mexico and Canada. In the VW group, the two premium brands Audi and Porsche would be particularly affected, as they do not produce in the US, but their profits and high margins are important for the group’s overall result. The rating agency Moody’s estimates that around 1.8 billion euros of the group’s operating profit would be at risk if the US were to impose tariffs on auto imports from Europe.