While the U.S. administration's tariffs have sparked widespread criticism globally, they nevertheless seem to be forcing some foreign manufacturers to plan more production in the United States.
Latest example, the Volkswagen Group (VW). According to several sources, negotiations are underway between the German auto giant and the White House to build an Audi factory on American soil.
The U.S., a big market for Audi
Unlike the Volkswagen brand, which already assembles certain models in the U.S., Audi does not have any production facilities there. The majority of its vehicles destined for the American market come from Europe, with the exception of the Q5, manufactured in Mexico — a country now targeted by punitive tariffs. This context makes a domestic production presence essential for the brand.
Oliver Blume, CEO of the VW Group, recently confirmed to the Frankfurter Allgemeine that active discussions are taking place with the American authorities.
For Audi, the United States remains a crucial market. The current suspension of vehicle deliveries in response to the new tariffs is only a temporary measure. The long-term solution, according to Blume, lies in domestic production.
Porsche, a special case
While Audi is forced to adapt, Porsche — another brand in the VW Group — is adopting a different strategy. Because the brand has more premium positioning and lower sales volumes, it can absorb price increases without too much impact on its clientele. So at least for now, Porsche does not plan local production.
An U.S. factory, but not for several years
Even if an agreement is reached, don't expect to see "Made in USA" Audis any time soon. Building a factory, finding the right suppliers and hiring training a workforce takes time. The Trump administration has acknowledged as much, and is suggesting that it might grant delays or exemptions to allow automakers to adjust.