Audi Eyes U.S. Shift

Audi’s U.S. Plans

It looks like Audi is considering shaking things up a bit by moving some of its manufacturing over to the United States. This is a move aimed at counterbalancing the effects of hefty tariffs that have been rolled out recently. With all the talk about a 25% levy on imported vehicles, Audi’s looking to adapt by possibly using VW’s manufacturing assets stateside, according to reports from Automotive News and its German counterpart, Automobilwoche.

Production Changes

Right now, most of Audi’s lineup in the U.S. is shipped in from Mexico and Europe. But with the new tariffs, they might start to produce the compact Q4 E-tron EV crossover at VW’s plant in Chattanooga, Tennessee. There’s also a hint that the bigger Q8 E-tron production could be moved from Mexico to a new facility in Columbia, South Carolina. The Q6 E-tron might also find a new home in the U.S., but that decision is still in the planning stages.

Market Presence

Audi’s got its eyes set on boosting its presence over here in the U.S. It’s one of their key markets, right up there with Europe and China. Despite some reticence about firm plans, Audi has made it clear they are exploring various scenarios to ramp up their footprint on American soil.

Over the past year, Audi’s been doing pretty well, especially with their electric vehicles. Their Q1 2025 revenue saw a 12% increase year-over-year, raking in approximately $17.49 billion. This uptrend is largely thanks to their EV sales, and Audi plans to ride that momentum by introducing 10 new models to the U.S market. Decisions about where these models will be manufactured should come later this year.

Challenges Ahead

Audi faces a tougher road in the tariff battle compared to other German luxury brands which already have manufacturing footprints in the U.S. It’s like being the odd one out when BMW and Mercedes-Benz are already producing locally. For instance, BMW’s X3 is made in South Carolina, while Audi’s rival Q5 is produced in Mexico. The Q5, Audi’s top-selling model in the U.S., is built in their only North American plant, located in Mexico. That plant has churned out over a million Q5s since 2016. Although it’s a hit, it does carry the weight of being non-compliant with USMCA rules, which could spike costs due to the tariffs.

Final Thoughts

The auto industry is constantly in flux, especially with tariffs and trade policies making waves. For Audi, figuring out their production logistics is a key part of navigating these challenges. The recent U.S. administration’s move to exempt parts that qualify under the USMCA from high tariffs intends to coax more manufacturing into the country. Yet, Audi’s staple, the Q5, doesn’t fit the bill due to its sparse use of U.S.-made components. It’s a strategic puzzle that Audi needs to solve if it hopes to remain competitive and compliant in the American market.