German luxury car maker Audi said it is considering moving car production to the US to avoid tariffs from the Trump administration.
Volkswagen's subsidiary Audi Brand said this week it is investigating a variety of long-term strategies, including the possibility of moving production to the US, to address President Donald Trump's restrictions on foreign imports.
Audi CEO Gernot Döllner I said The company “currently evaluates a variety of scenarios for additional localization in North America – particularly to approach the needs of local customers and increase resilience due to global economic uncertainty.”
Although no solid decisions were made this week, the German automotive giant said it will be making an announcement later this year, as it plans to produce major vehicle models for the US market.
Currently, Audi does not have a production site in the US. Mexican Volkswagen plants have chosen to produce top-selling models in the US market.
This puts the brand at risk of being slapped at tariffs under the Trump administration, making repurposing automobile manufacturing a top priority for the US.
President Trump has picked out the automotive industry as a key complaint in the ongoing trade dispute with the European Union.
“We have a massive deficit in the EU. They don't take our produce, they don't take our cars… How many Chevrolets and Fords do you see in the middle of Munich? There's no answer. The EU has abused the US for many years.
Audi is already facing economic challenges, with increasing competition between Germany's rising energy costs and the overflow of cheap Chinese electric vehicles in the European market. company I said To cut 7,500 jobs from the workforce as they restructure.
If Audi shifts production to the US, it could have ripple effects on the wider industry. Mercedes-Benz production chief Jog Berser said on Tuesday that continued imports of GLB crossovers in the US from Mexico will depend in part on whether rivals have moved production to the US. It has been reported.
The Trump administration's tariffs may have already led several automobile manufacturing to return to the US, with Japan's giant Honda reportedly planning to move production of the civic hybrids sold from Mexico to Indiana.
Other major companies, such as Apple, Oracle and Taiwan Semiconductor Manufacturing Co. (TSMC), have also announced plans to invest hundreds of millions of dollars to increase production in the US.
