On the Dash:
- Audi will produce its first U.S.-built luxury SUV in collaboration with VW-owned Scout Motors by late 2027.
- The SUV will be a range-extender hybrid designed for off-road performance, targeting Land Rover Defender buyers.
- Domestic production helps Audi reduce tariff exposure and strengthen its competitive position in the North American market.
Audi plans to produce a new luxury SUV in the United States, aiming to challenge the Land Rover Defender and strengthen its presence in the North American market. The SUV, a range-extender hybrid, will be built specifically for U.S. customers at VW-owned Scout Motors’ plant in Blythewood, South Carolina, with production expected to begin by late 2027.
Audi, which has lagged behind rivals BMW and Mercedes in U.S. sales, in part due to its reliance on imports from Europe and Mexico, is leaving the brand exposed to tariffs. Partnering with Scout allows Audi to produce vehicles domestically without commissioning a separate U.S. factory.
The new SUV will feature a ladder-frame chassis and four-wheel-drive systems with locking differentials, technologies Audi has not previously used. Scout Motors, revived by Volkswagen in 2022, plans to launch two vehicles from the Blythewood facility: the Scout Traveler SUV and the Scout Terra truck. Over 80% of Scout vehicle reservations are for range-extender variants, which offer roughly 500 miles of range, compared with 350 miles for fully electric models.
Audi previously hinted at its off-road ambitions with the Q6 e-tron Offroad Concept, which included portal axles and a higher ride height, signaling the brand’s intent to compete seriously in the rugged SUV segment.
By producing vehicles domestically through Scout, Audi aims to reduce tariff exposure and offer a vehicle tailored to North American tastes. The partnership also introduces ladder-frame and hybrid technology to Audi’s U.S. lineup, potentially setting the stage for more off-road capable models in the future.
