Audi Could Soon Build Cars At Three U.S. Locations

With Donald Trump’s erratic trade actions hitting the auto industry full force, especially foreign automakers who export their products into the U.S., a drastic shift in priorities is currently taking place. Audi, like several other European brands, has a large presence in the United States, a market the automaker qualifies as its « third global pillar » in terms of its international growth strategy, alongside Europe and China.
To mitigate the damage caused by the White House’s 25-percent tariffs that went into effect on May 3, Audi is looking into ways to bolster its U.S. production through three new sites, two of which could be borrowed from sister brands Volkswagen and Scout Motors.

Audi

Founded

July 16, 1909

Founder

August Horch

Headquarters

Ingolstadt, Germany

Current CEO

Markus Duesmann

Status

Active

Audi’s Most Popular SUV Just Got Even Better

Though it also got a bit pricier.

Volkswagen’s Tennessee Plant Could Soon Build The Q4

An Audi spokesperson told Automotive News that the company is currently examining various scenarios for how it can increase its domestic presence in the U.S. The spokesperson said that they are confident that Audi will have arrived at a final decision on its American plans by the end of the year. And on May 5th, Audi CFO Jürgen Rittersberger announced in an earnings call that the automaker will soon introduce 10 new models into the U.S. market. Where these new vehicles will be built will be announced this year, Rittersberger said.
Audi hasn’t yet confirmed any of this, but sources close to the matter have told European publication Automobilwoche that the automaker is looking into selecting three key locations to build its vehicles domestically. For starters, the relatively easy one would be the Audi Q4 electric crossover, a mechanical twin to the Volkswagen ID.4. Since the ID.4 is currently built in Chattanooga, Tennessee, Audi could rapidly retool the plant in order to also build the Audi.

Audi could soon build the Q4 alongside the VW ID.4 in Tennessee.

The Q8 E-tron could be built alongside Scout EVs.

It’s still unclear where Audi’s third U.S. manufacturing location will be.

Audi

The second location for the Q8 E-tron electric midsize SUV could be Scout Motors’ plant in Columbia, South Carolina, which is still under construction. The Q8 is currently built in Mexico. For the third location, it’s still all up in the air at this point.
Will Audi Have Enough Time To Shift Production?

Shifting more auto production into the U.S. is easier said than done. As I write this, the tariffs have already begun hitting European automakers, who are trying by any means possible to prevent passing these tariffs onto the consumer. Even if Volkswagen’s Chattanooga is already building electric vehicles (EVs) built on the VW group’s MEB platform — the same platform that underpins the Audi Q4 — it’ll still take a considerable amount of time and resources to adapt the plant accordingly.
Meanwhile, Scout Motor’s facility isn’t scheduled to be fully operational until 2027, and if Audi needs to erect an all-new facility for its mysterious third location, it could take another two to three years before we start seeing cars coming out of it. In other words, it’s unclear how Audi, or any other automaker that’s also making such U.S.-bound claims, will mitigate the short-term tariff damage until production has shifted.

Audi

Audi’s claims, however, could serve as a way to appease the Trump administration, which could back off on tariffs knowing that efforts and investments are currently being made to increase U.S. production. But Trump’s volatile behavior makes things impossible to predict. It’s obviously all a work in progress, and we’ll know more as the entire trade war develops. We’ll report back here with more information about Audi’s plans to increase its U.S. presence once we have it.