Audi is reportedly considering establishing a production facility in the United States, a move potentially accelerated by the recent agreement between the European Union and the United States regarding tariffs. According to sources cited by “Handelsblatt”, the construction of a “twin plant” mirroring existing Audi infrastructure is currently favored. Chattanooga, Tennessee, where Volkswagen already operates a manufacturing plant, has emerged as a prime contender due to the possibility of leveraging Volkswagen’s infrastructure and logistical operations, potentially reducing construction time and costs.
However, this remains one potential solution among several. Volkswagen CEO Oliver Blume is reportedly engaged in discussions with the U.S. government to structure future investments in a way that mitigates the impact of import tariffs. The prospect of a new location for the facility has not been ruled out, contingent upon the outcome of these negotiations.
The development of a U.S. manufacturing plant is anticipated to impact Audi’s operations in Mexico, where the popular Q5 model is currently produced for the U.S. market. Sources within the Volkswagen supervisory board state that there is an ongoing review of the possibility of transferring the newer Audi plant in Mexico, either entirely or partially, to the Volkswagen brand Cupra.
This strategic move is intertwined with a new growth strategy slated for presentation by Audi CEO Gernot Döllner in September. Insider information suggests Döllner aims to substantially increase U.S. sales, targeting a volume significantly above the current level of under 200,000 units, potentially exceeding 300,000. Globally, Audi envisions selling between 2.2 and 2.3 million vehicles in the medium term. Audi confirmed to “Handelsblatt” its intention to strengthen local production and indicated that several scenarios are currently under evaluation, with a final decision expected later this year.