Audi Eyes U.S. Plant

Audi’s U.S. Expansion Plans

So, there’s buzz in the air that Audi might be looking to beef up its presence in the United States by building a production facility. This comes as the automaker seeks to dodge the blow of potential tariffs that might come into play, affecting European car manufacturers. According to German magazine Der Spiegel, and later backed by Automotive News, Audi is mulling over a few options to combat these costs. One of those options includes building a plant somewhere in the southern U.S. But we’re not talking chump change here—this could cost about $4.6 billion. It’s a significant investment they’re considering to cut down on shipping and tariffs.

Decision Time Soon

An Audi spokesperson has hinted that a decision could be made within the year, in line with strategies discussed with the Volkswagen Group. Although there’s no definite word yet, Audi’s fortunes in the U.S. might push them to act sooner rather than later. Recent figures showed a 14% drop in sales for 2024 year-over-year, so they might need to shake things up a bit. This could mean reevaluating their designs and perhaps manufacturing (or at least assembling) in the U.S. to make their cars more competitive in American terms. Looking at examples like BMW, which has been producing cars in South Carolina since 1994 and has grown into the biggest automotive exporter by value from America, Audi could see similar benefits from going local.

Potential Sites

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Audi wouldn’t have to start from scratch if they decide to put down roots in the U.S. The Volkswagen Group already runs operations in Chattanooga, Tennessee, where models like the ID.4 EV and other SUVs roll off the line. There’s also the new facility being developed by Scout Motors in Columbia, South Carolina. While Porsche has decided against U.S. production citing sales volumes, Audi, part of the same family, is still considering it.

In the meantime, Audi is reportedly discussing a separate route by negotiating a tariff deal with the U.S. government, like what some of their compatriots—BMW, Mercedes, and of course, Volkswagen—are rumored to be working on. BMW and Mercedes may have a leg up, being the only exporters in this group, but collective efforts might yield beneficial results for Audi as well.

Building locally could also bring an exciting new chapter in the Audi driving experience— imagine the hallmark precision and luxury of an Audi car but with a backdrop of rolling American landscapes. It could be a game-changer, only time will tell.