Audi Considers Building U.S. Factory to Counter Trump’s Tariffs

For decades, Audi has watched from the sidelines as its German counterparts — BMW and Mercedes-Benz — established massive production facilities across the United States. But now, political pressure, aggressive tariffs, and a shifting automotive landscape may finally be pushing the Ingolstadt-based manufacturer to make its move.

According to Der Spiegel, Audi is actively considering the construction of a brand-new automotive plant in the southern United States. This would mark a strategic shift in the company’s global manufacturing footprint, potentially breaking its longstanding reliance on exports from Europe and Mexico.

Why Now? Trump’s Tariffs Turn Up the Heat

The push for a U.S. facility is believed to be driven largely by the Trump administration’s hardline stance on automotive imports. Since reentering the political spotlight, Trump has doubled down on promises to “bring car manufacturing back to America,” proposing punitive tariffs on foreign-built vehicles and components.

Brands like BMW and Mercedes — who already build cars in the U.S. (in Spartanburg, South Carolina, and Tuscaloosa, Alabama, respectively) — have been relatively shielded. Audi, however, has no domestic U.S. production and thus stands exposed to tariff-related cost hikes and regulatory instability.

While Audi had previously considered local production via Volkswagen’s Chattanooga plant in Tennessee, new developments suggest that an entirely independent factory might now be on the table. According to sources cited by Der Spiegel, Audi is evaluating locations in the southern U.S., with a project that could require an investment of up to $4.6 billion (€4 billion).

Audi Confirms “Multiple Scenarios” Are Under Review

Speaking to Reuters, an Audi spokesperson acknowledged the reports, confirming that the company is indeed “examining various scenarios” to expand its U.S. footprint.

“We are currently examining various scenarios for this,” the spokesperson stated. “We are confident that we will make a decision this year in consultation with the [Volkswagen] Group on how this will look in concrete terms.”

This official confirmation lends weight to the growing speculation that Audi may join the ranks of automakers committing billions to North American production. It also aligns with Volkswagen Group’s broader push into U.S. manufacturing, especially with the Scout EV brand set to begin production in South Carolina by 2026.

A Broader Push for a Balanced U.S.-EU Trade Model

Automotive trade tensions between the U.S. and the European Union have escalated since 2018. German automakers have been particularly vocal in calling for a new “export offsetting model,” which would balance the value of cars exported to and imported from the U.S.

Without such a deal, companies like BMW are reportedly losing up to $11.5 million per day due to tariffs and regulatory hurdles. A local production strategy could help automakers like Audi bypass import duties and gain favor with U.S. regulators, particularly under a Trump-led administration.

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What Would an Audi U.S. Plant Produce?

While no official model lineup has been confirmed, experts speculate that Audi would focus on building electric SUVs or crossovers domestically, following industry trends and regulatory priorities. Vehicles like the Audi Q6 e-tron or a future EV variant of the Q5 could be strong candidates.

This would also mirror Volkswagen Group’s U.S. strategy with Scout Motors, whose upcoming rugged off-road EVs are specifically tailored for American consumers.

Conclusion: Audi’s American Gamble Might Finally Happen

If Audi does go ahead with a U.S. plant, it will mark a pivotal moment not just for the brand but for the entire Volkswagen Group. It signals a deeper commitment to American manufacturing and a possible truce in the ongoing tariff war.

While a final decision is still pending, all signs point to 2024 being the year Audi gets serious about “Made in USA.” And with electric vehicle production surging and political pressure mounting, the timing couldn’t be more critical.