Audi Weighs Major U.S. Plant to Counter Trade Tensions

25-Jun-2025

Key Takeaways

Audi is exploring a potential $4.6 billion investment to establish a U.S. production facility.
Southern U.S. states are being considered due to business-friendly conditions and auto infrastructure.
The move is aimed at easing tariff tensions under the Trump administration.
Audi currently does not produce vehicles in the U.S., though Volkswagen operates two American plants.
German automakers are in talks with U.S. officials to negotiate tariff terms.

In response to escalating tariff pressures under President Donald Trump’s trade policies, Audi is evaluating plans to establish its own manufacturing footprint in the United States. According to industry sources, the automaker is seriously considering a large-scale production site in the southern region of the country, with potential investment reaching up to €4 billion ($4.6 billion).

This move is among several strategic responses under review, aimed at reducing Audi's exposure to rising import tariffs that have significantly impacted German car exports to the U.S. market.

Southern U.S. in Focus for New Facility

Internal company sources indicate that the southern United States is the frontrunner for the project, given its robust automotive ecosystem and favorable regulatory climate. While building a new plant would require substantial capital, it would also allow Audi to localize production and potentially mitigate trade-related costs.

Audi's spokesperson confirmed that the brand is "currently examining various scenarios" to grow its presence in the U.S., and a decision is expected by the end of the year in collaboration with Volkswagen Group leadership.

Though Audi has no current manufacturing presence in the United States, Volkswagen operates an established facility in Chattanooga, Tennessee, and is building a second site near Columbia, South Carolina—both of which could complement future Audi operations.

German Automakers Push for Tariff Relief

Meanwhile, Audi’s parent company joins BMW and Mercedes-Benz in discussions with U.S. trade officials. These talks aim to leverage the automakers' American investments as a basis for negotiating more favorable import conditions. The broader goal: cushion the financial impact of transatlantic tariffs that have already cost German manufacturers hundreds of millions of euros.

As trade tensions reshape global automotive strategies, Audi’s consideration of a U.S.-based plant underscores the growing need for regional production in key markets.

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