Volkswagen Plans Audi Production in the US | Ours Abroad News

Volkswagen AG aims to manufacture some Audi cars in the US to circumvent tariffs imposed by President Trump. CEO Blume emphasizes commitment to the US market while halting Mazda's CX-50 exports to Canada due to similar tariff challenges.


Volkswagen Plans Audi Production in the US | Ours Abroad News

The automotive company Volkswagen AG is considering producing some Audi brand cars in the United States to avoid tariffs imposed by President Donald Trump, announced its CEO in an interview with the Frankfurter Allgemeine Zeitung newspaper. According to his statements, the company's future strategy aims to offer tailored and attractive projects for the U.S. market, demonstrating its commitment as an investor and reliable partner in the country.

In contrast, the CEO of Volkswagen ruled out the possibility of producing the iconic Porsche sports cars on U.S. territory due to the low current production volume of these vehicles, which is around 70,000 per year. He emphasized that for the Porsche brand, the United States is its most successful market and highlighted the importance of the "Made in Germany" concept for American consumers.

On the other hand, the Japanese automotive company Mazda announced that it will temporarily suspend exports to Canada of a model manufactured in the United States in response to tariffs imposed by Trump. The production of the CX-50 SUVs destined for Canada at the Alabama plant will cease from May 12, although the manufacturing of this model for other markets will continue unchanged.

The 25% tariffs imposed by Trump on vehicle and parts imports, along with retaliatory measures from Canada, have forced Mazda and other foreign companies to seek a balance between short-term relief and long-term strategies. Japanese automakers are particularly affected by U.S. border policies, given the importance of this market for their operations.

Oliver Blume, CEO of VW, reported that the company is maintaining constructive dialogues with the U.S. government and is considering the production of Audi vehicles in the country as part of its development strategy. These discussions coincide with the possibility of temporary exemptions from tariffs on imported vehicles, promoted by Trump to give automotive companies more time to establish or strengthen their production on U.S. soil.

Despite the benefits that the proposed tariffs could bring to local manufacturing in the United States, in certain cases it would require a significant reorganization of global supply chains, which would increase costs and final vehicle prices. Volkswagen has a plant in Chattanooga, Tennessee, since 2011, and is building another facility near Columbia, South Carolina, for the Scout brand, now focused on electric vehicles. It is worth noting that many vehicles from the VW group are imported from Europe or Mexico, and that Audi currently does not have a production base in the United States.