Audi is nearing a final decision on building its first U.S.-based factory, a critical stopgap that could help the automaker mitigate some of the impact of President Trump’s 25% auto tariffs. During the auto show in Shanghai, Audi CEO Genot Döllner revealed that the company was moving toward a final decision and is currently considering several solutions.
The first solution is to build an entirely new United States plant. If Audi opts for this plan, it would likely take three and a half to four years to get up and running. It would likely be located near an existing Volkswagen (VW) facility to take advantage of established supplier networks and operational efficiencies.
The second solution includes leveraging an existing VW plant in Chattanooga, Tennessee, to produce Audis. This would be a near-term workaround while the company finalizes long-term production plans.
The third solution includes converting a new VW facility under construction in Blythewood, South Carolina, originally intended for Scout vehicle production, into a facility capable of assembling Audi vehicles.
Döllner emphasized that building a plant in the United States does not mean Audi is yielding to political pressure from President Trump. Instead, he framed the move as part of Audi’s broader, long-term strategy to grow its presence in the U.S. The company had considered creating a U.S.-based manufacturing plant well before Trump returned to office for a second term.
In the meantime, Audi is exploring additional responses to the tariffs, including a combination of price increases and internal operational shifts. The automaker’s current North American strategy includes manufacturing the popular Q5 SUV in Mexico and exporting it to the United States under the updated USMCA trade agreement.
Döllner reaffirmed Audi’s commitment to expanding its footprint in the U.S. and growing within the North American market over the next decade. A final decision on how to proceed, including the location of the potential plant, is expected later this year.
