Audi is reportedly considering establishing a manufacturing facility in the United States, leveraging a recently reached trade agreement between the European Union and the U.S. According to reports in “Handelsblatt”, citing sources familiar with the discussions, the company is currently evaluating a plan to build a facility mirroring its existing operations, potentially alongside Volkswagen’s established plant in Chattanooga, Tennessee. Utilizing existing infrastructure and logistical planning already in place at the VW site could significantly reduce construction time and associated costs.
While the Chattanooga option presents a cost-effective solution, it is not yet confirmed. Volkswagen CEO Oliver Blume is reportedly in negotiations with the U.S. government to structure future investments in a manner that factors in tariffs. A favorable agreement would alleviate the financial burden of import duties, potentially shifting the likelihood towards establishing a facility at a completely new location. Audi has confirmed to “Handelsblatt” that it is actively exploring options to further localize production, stating that “various scenarios are currently under assessment”. A final decision is anticipated later this year.
The potential U.S. expansion is also expected to impact Audi’s operations in Mexico, where the company presently ships its popular Q5 model to the American market. Sources within the Volkswagen Group supervisory board suggest the possibility of transferring the Mexican plant, either wholly or partially, to the Volkswagen Cupra brand.
This strategic investment is intertwined with a new growth strategy slated for presentation by Audi CEO Gernot Döller in September. Sources indicate that Döller intends to significantly increase Audi’s U.S. sales, aiming to surpass 300,000 units, as part of a broader goal to sell between 2.2 and 2.3 million vehicles globally in the medium term.
