Audi is preparing to take a major step in rejigging its North American strategy. The German automaker is looking at producing some of its models directly in the U.S. to escape import tariffs imposed by the Trump administration.
A 25-percent tariff is currently applied to vehicles imported from Europe and Mexico, two key sourcing markets for Audi. To avoid that heavy surcharge, the German manufacturer is now considering three American production sites.
Q4 e-tron soon to be assembled in Tennessee?
According to Automobilwoche, Audi may begin assembling the compact electric SUV Q4 E-tron – or its successor – at Volkswagen's Chattanooga plant in Tennessee. The model shares the MEB platform with the VW ID.4, already manufactured there, which would facilitate rapid integration.
Q8 e-tron headed to South Carolina
Initially planned for Audi's Mexican plant, the Q8 E-tron all-electric midsize crossover could instead be produced in Columbia, South Carolina. Still under construction, the site there belongs to Scout Motors, a new Volkswagen subsidiary focused on rugged SUVs.
Q6 e-tron still looking for a home
Audi is also looking for a third location to assemble the Q6 E-tron, another compact electric SUV based on the new PPE platform. No site has yet been confirmed, but a decision could be made by the end of the year.
A priority for Audi
An Audi spokesperson confirmed that the U.S. now represents the manufacturer's third strategic pillar, after Europe and China. “We want to strengthen our presence in the United States,” he stated. “Several scenarios are currently under consideration.”
During a media call on May 5th, company CFO Jürgen Rittersberger said that Audi plans to launch 10 new models on the American market and that production location decisions will follow in the course of 2025.
Making like Mercedes
Audi is not the only German manufacturer adjusting its strategy in response to tariffs. Mercedes-Benz plans to build an additional model at its Tuscaloosa plant in Alabama as early as 2027. That is likely to be the GLC, the brand's second most popular model in the United States.
Mercedes estimates that the new tariffs could cost it up to $1 billion, Chief Financial Officer Harald Wilhelm said last February.