With the threat of tariffs proposed by the U.S. administration on many countries and regions, including Europe and Mexico, the Volkswagen Group is reportedly considering building some Audi and Porsche vehicles in the U.S.
This could happen if the proposed tariffs are high, according to German business outlet Handelsblatt, as reported by Automotive News.
Unlike Volkswagen, neither Porsche nor Audi currently assembles vehicles in North America. Audi's two main rivals, Mercedes-Benz and BMW, build vehicles in the U.S., in Tuscaloosa, Alabama, and in Spartanburg, South Carolina, respectively.
Volkswagen plant could expand its plant in Chattanooga, Tennessee, to accommodate the construction of Audi and Porsche vehicles. Handelsblatt quotes several company sources as suggesting this.
Volkswagen's new Scout plant in South Carolina is another option for Audi production, according to the outlet.
Audi assembles its most popular model, the Q5 SUV, in San Jose Chiapa, Mexico. All Porsche models sold in the U.S. are built in Europe.
The Chattanooga plant, which makes the gasoline engine for the Atlas SUV, as well as the ID.4 electric SUV, has excess capacity and plenty of room for expansion, again according to Handelsblatt.
And as quoted by Automotive News, according to Moody's, the Volkswagen Group's profits could be cut by 5-10 percent in the event of 10 percent U.S. tariffs on European imports and by 15 percent if 25 percent tariffs are imposed on imports from Mexico.