Audi is facing a potential financial burden exceeding €1 billion this year due to import tariffs in the United States, according to reports citing sources within the company. Unlike competitors BMW and Mercedes-Benz, Audi currently lacks a production facility within the US market, meaning the full impact of the increased tariffs is being absorbed by the company. Fluctuations in exchange rates are compounding the financial strain.
Currently, Audi is reportedly not passing these increased costs onto US customers, further amplifying the negative effect on profitability. An executive reportedly stated the company is not generating any profit in the US market at present.
Sources indicate that Manfred Döss, Chairman of Audi’s Supervisory Board, engaged in discussions with representatives of the former Trump administration during the recent IAA motor show. These conversations focused on the possibility of factoring in Volkswagen Group investments, potentially including the establishment of an Audi production plant, against the imposed tariffs. A company decision-maker described the aim as “clarifying a few things in the USA.
A final decision regarding a potential US production facility for Audi remains pending. The possibility of a multi-billion euro investment in the US will be determined during Volkswagen Group’s annual planning round, which will be approved by the Supervisory Board in November. Company insiders suggest the timing of any such investment remains subject to change.