Trump May Ultimately Push Audi to Act in America | Carscoops

Trump May Ultimately Push Audi to Act in America | Carscoops

      Audi is reportedly contemplating the construction of a factory in the United States.

      The new facility is expected to be located in the South and may cost around $4.6 billion.

      No decision has been finalized yet, but one may be reached later this year.

      While German competitors BMW and Mercedes have set up significant manufacturing operations in the U.S., Audi has yet to establish a presence. However, with the tariffs from President Trump in effect, the company might soon reevaluate its approach.

      Though there have been suggestions about Audi manufacturing some vehicles in the U.S.—likely at Volkswagen’s existing plant in Chattanooga, Tennessee—it seems a brand new factory is now being considered. This information comes from Spiegel, which reported that the move is under consideration to appease President Trump.

      According to an Audi spokesperson speaking with Reuters, the company is exploring options for a larger investment in the United States, stating, "We are currently examining various scenarios for this.” They expressed confidence in making a decision this year in collaboration with the [Volkswagen] Group regarding the specifics.

      BMW, Mercedes, and Volkswagen have been advocating for a US-EU trade agreement as they are significantly affected by Trump’s tariffs. Reports indicate that BMW is incurring losses of $11.5 million (£8.6 / €10) daily, and they are eager to halt this financial downturn.

      Much of the discussion has revolved around a proposed "export offsetting model," which would consider the balance between imports and exports of vehicles between the U.S. and Europe. Additionally, sources suggest the Trump administration is contemplating increased investments in the U.S., although details remain unclear.

Trump May Ultimately Push Audi to Act in America | Carscoops Trump May Ultimately Push Audi to Act in America | Carscoops

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Trump May Ultimately Push Audi to Act in America | Carscoops

A decision regarding Audi's factory in the U.S. may be reached later this year due to pressures from the trade war.