Volkswagen considers shifting Audi production to the U.S. to avoid Trump’s 25% auto import tariffs, aiming to protect profits and secure market access.
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| Facing steep Trump-era tariffs, Volkswagen could shift Audi production to America to avoid duties and preserve access to the crucial U.S. luxury car market. Image: CH |
Wolfsburg, Germany – April 19, 2025:
Volkswagen may move a portion of its Audi production to the United States in response to newly imposed auto import tariffs by former U.S. President Donald Trump, the German automaker’s CEO revealed on Friday.
In an interview with Frankfurter Allgemeine Zeitung, Volkswagen Group CEO Oliver Blume confirmed that the company is engaged in “constructive discussions” with the U.S. administration to manage the impact of Trump’s latest trade measures, which include a 25% tariff on foreign automobiles.
“For Audi, production in the United States would be in line with our development strategy,” Blume stated, suggesting that the premium German brand could soon roll off American assembly lines.
Volkswagen—Europe’s largest automaker and parent company to 10 brands including Audi, Porsche, Seat, and Skoda—sold over one million vehicles in North America last year, making the region a vital market. While the company already maintains a production facility in Chattanooga, Tennessee, about 65% of Volkswagen-branded vehicles sold in the U.S. are imported from Europe or Mexico. The figure is even higher for its luxury marques: 100% of Audi and Porsche vehicles sold in the U.S. are currently imported.
Despite Porsche’s popularity in America, Blume ruled out U.S. production for the sports car brand, citing insufficient volume—only 70,000 units annually—to justify local manufacturing.
Trump’s reintroduction of steep tariffs on imported cars is aimed at reshoring auto production to the United States. His administration argues that foreign carmakers should contribute more to American jobs and manufacturing, or face stiff financial penalties.
Volkswagen, which earlier this month reported a dip in Q1 profits partly due to the tariff uncertainty, has not yet disclosed the specific financial impact or whether U.S. prices would increase as a result. However, Blume emphasized that Volkswagen remains committed to the U.S. as a key market and partner.
“With our footprint in the United States, we want to do as much as possible to remain an investor and reliable partner,” he said.
As competition intensifies in China—particularly in the electric vehicle segment—Volkswagen’s strategic focus is shifting. The U.S. market is now more important than ever, and relocating Audi production may be a crucial step to shield the company from escalating trade tensions and to maintain its strong position in the American auto landscape.