Audi is considering building a factory in the United States
- Following the tariff agreement between the European Union and the United States, Audi is reviewing its American strategy.
The German premium brand is considering building an assembly plant in the United States to avoid the 15% tariffs imposed on European cars imported into that country.
The German premium brand is considering building an assembly plant in the United States to avoid the 15% tariffs imposed on European cars imported into that country.
- Currently, Audi does not have an assembly plant in the United States but does have one in Mexico (San Jose Chiapa) where, since 2017, the Audi Q5 SUV (D segment) has been produced at an average rate of 150,000 units per year, a third of which are exported to the United States. This represents approximately 50,000 vehicles annually shipped from Mexico to the United States out of a total of 200,000 Audi vehicles sold annually in the US market, with the remaining 150,000 vehicles being imported from Europe.
- But since 2024, Audi sales have been declining significantly in this market: -14% in 2024 and -14% expected in 2025. This decline in sales will not improve with the new taxes imposed by the Trump administration, for example 15% for cars from Mexico and 15% for cars from Europe.
- This is why Audi wants to build an assembly plant in the United States, ideally near Volkswagen's Chattanooga plant in Tennessee. The four-ring brand is aiming for a capacity of 150,000 to 200,000 vehicles per year. Construction of the plant would take two years. This plant would allow Audi to avoid tariffs on cars currently produced in Europe and Mexico.