Audi is facing a significant financial burden in the United States this year, potentially exceeding one billion euros, due to import tariffs. According to reports from within the company, cited by “Handelsblatt”, the Volkswagen subsidiary is absorbing the full impact of the increased costs, as it currently lacks its own manufacturing facility within the US market.
Unlike competitors BMW and Mercedes-Benz, who do have US-based production, Audi has not been able to offset the higher duties through local manufacturing. A company executive stated that currency exchange rate fluctuations are further compounding the problem, effectively eliminating profitability from Audi’s US operations presently.
Sources indicate that Manfred Döss, Chairman of Audi’s Supervisory Board, engaged in discussions with representatives of the previous Trump administration during the recent IAA motor show. The focus of these conversations centered on the possibility of factoring potential Volkswagen Group investments in the US – including a hypothetical Audi production plant – into the tariff calculations. A company insider described Döss’s motivation as wanting to “clarify several matters in the US.
The decision regarding a potential US manufacturing facility for Audi remains pending. A final determination regarding the multi-billion euro investment is expected during Volkswagen’s annual supervisory board planning round, typically held in November. Company sources suggest the timing of the potential investment remains flexible and subject to ongoing evaluation.
