Business
Trump’s Trade War Pays Off? World’s Second Biggest Automaker Moves Production to U.S.
By Jake Beardslee · May 8, 2025
Audi Eyes U.S. Manufacturing Shift Amid Trump Tariffs
Audi, the luxury subsidiary of Volkswagen Group and part of the world’s second-largest carmaker, is preparing to shift portions of its production to the United States—a move aligned with President Donald Trump's aggressive trade strategy, including a 25 percent tariff aimed at boosting American manufacturing. The White House / Wikimedia
Most Audi Models Still Built Abroad—For Now
Audi currently builds most of its lineup in Hungary, Slovakia, Spain, Mexico, and China. However, the company confirmed it is "examining various scenarios" to strengthen its U.S. presence. G. Edward Johnson / Wikimedia
Audi Confirms It’s Exploring U.S. Production Options
“We want to localize more strongly in the USA,” an Audi spokesperson told DailyMail.com, adding that final decisions will be made in coordination with Volkswagen Group by year’s end. Alexander-93 / Wikimedia
Audi Considers Three U.S. Sites, with Chattanooga Leading
On a recent earnings call, Audi CFO Jürgen Rittersberger announced plans to launch 10 new models in the U.S., with production locations to be announced in 2026. According to German trade publication Automobilwoche, three American sites are under consideration, with Chattanooga, Tennessee—where Volkswagen already manufactures the ID.4 electric vehicle—leading the pack. Alexander Migl / Wikimedia
Q4 E-tron Could Join VW’s ID.4 on U.S. Production Lines
The ID.4 shares a platform with Audi’s Q4 E-tron, an electric crossover that may soon be produced domestically. This would allow Volkswagen to adapt its current infrastructure instead of starting from scratch. Other potential sites include South Carolina, where Volkswagen is building a new Scout Motors facility, and a third undisclosed location. Thomas Doerfer / Wikimedia
Audi Move Signals Major Shift in Global Supply Chains
If finalized, this shift would mark a significant reshaping of global supply chains. While Trump has expressed skepticism about electric vehicles, his tariff policies have ironically pushed automakers to invest more heavily in U.S.-based EV production. Audi is just the latest major player to consider onshoring EV manufacturing. The White House / Wikimedia
Slate Exec: EV Manufacturing in U.S. Is the “Only Obvious Solution”
“Building EVs for a new company is the only obvious solution,” said Jeremy Snyder, chief commercial officer of the startup Slate, in an interview with DailyMail.com, adding that infrastructure and public perception hurdles are being addressed. CHUTTERSNAP / Unsplash
EVs Offer Simpler, Daily Convenience for Drivers, Says Synder
"For drivers, it is simply a better experience. You pull into your parking spot, you plug in, you wake up to a full ‘tank’ every single day," Snyder continued. myenergi / Unsplash
Hyundai, Honda Join EV Manufacturing Surge in the U.S.
Other automakers have followed suit. Hyundai is ramping up its EV production in Georgia, while Honda is retaining Civic Hybrid manufacturing in Indiana. Hyundai Motor Group / Unsplash