Audi Considers New US Plant Amid Trump’s Tariffs
In response to the tariffs imposed by US President Donald Trump, Audi is considering building a new plant in the United States. According to information from the German news magazine Spiegel, a new build has better chances of success than expanding production at existing Volkswagen plants in Tennessee or South Carolina.
The new Audi plant could be located in the southern United States, where it would benefit from the existing network of suppliers and have shorter transportation routes. The facility, which could employ between 3,000 and 4,000 workers, would produce large electric SUVs like the Q8 for the global market.
Audi’s leadership hopes that this contribution to a more balanced US trade balance could help to appease Trump. The company is currently exploring various scenarios, but has not commented on the options of a new build or expansion.
While a new plant would be more expensive, with estimates ranging from 3.5 to 4 billion euros, Audi is only considering the option with significant state support. Another factor against the existing Volkswagen plant in Chattanooga is the potential for higher labor costs, as the plant’s workers are set to be represented by the US Auto Workers union in 2024, following a prolonged contract negotiation with the company. The proposed five-year deal would include salary increases of over 25 percent.