Volkswagen Might Manufacture Audis In The United States

Volkswagen is considering relocating some Audi production to the United States due to high tariffs imposed by the US government. In an interview with the Frankfurter Allgemeine newspaper, Volkswagen CEO Oliver Blume mentioned that discussions are ongoing with the US government regarding manufacturing in the US. Blume stated that the company is committed to staying as an investor and reliable partner in the United States.

Blume expressed that US production for Audi would align with the company’s development strategy. However, he clarified that producing Porsche in the US is not an option due to the small scale of around 70,000 vehicles per year. Volkswagen, being Europe’s largest carmaker, is significantly impacted by increasing tariffs, with a notable effect on the first-quarter operating profit as announced in early April.

Following US President Donald Trump’s decision to impose a 25 percent tariff on car imports, German automakers, including Volkswagen, have faced challenges in the US market. Blume did not provide details on the financial consequences of the tariffs for Volkswagen or whether prices in the US would be adjusted in response.

Given Volkswagen’s struggles in the Chinese market, the US market has become increasingly vital for the company. With over a million vehicles sold in North America last year, accounting for 12 percent of total sales, the US market’s significance is evident. Although Volkswagen has a manufacturing plant in Tennessee, the majority of Volkswagen cars in the US (65 percent) are currently produced in Europe or Mexico. For Audis and Porsches, this figure stands at 100 percent.