Audi is considering the construction of a manufacturing facility in the United States to minimize import tariff exposure and increase its American market presence according to German magazine Spiegel.
The premium brand under Volkswagen is studying the possibility of building a new plant in the southern United States at a potential cost of €4 billion ($4.6 billion) according to the report which relies on internal sources.
The company has confirmed through a spokesperson that it evaluates different options to increase its U.S. operations. The company spokesperson declared that the decision will be made this year while emphasizing that any new facility would need Volkswagen Group leadership approval.
The U.S. market lacks Audi manufacturing facilities although Volkswagen operates two facilities in Tennessee and will establish another in South Carolina.
The automotive industry faces increasing costs because of President Donald Trump’s extensive tariff policies which have already caused financial damage to German carmakers who export their products.
A U.S. factory would enable Audi to produce vehicles near American consumers which would reduce tariff exposure and make the company eligible for local incentives. The move supports industry-wide trends toward local production because of increasing trade barriers.
