Are you ready to build a USA Porsche?
It can happen. Thanks to President Trump's planned import duties, Porsche's parent company Volkswagen is considering moving production of some vehicles to Chattanooga, Tennessee and factories.
Building cars in the state also provides protection from a variety of geopolitical changes, including the first US president who finally runs the country.
The factory currently manufactures Atlas and Atlas Cross Sports with petrol, as well as ID.4 ev. Like many EVSs, ID.4 sales are lower than expected, meaning it makes sense to use that capacity on different models.
Chattanooga bound?
German automakers may move production in several Audi model states to either the Chattanooga plant or the South Carolina development plant. The factory, which will manufacture Scout Motors' new EV SUVs, is scheduled to open in 2027.
The tariffs cover vehicles built in Canada, Mexico and Europe, with Audi and Porsche being particularly exposed. Neither car manufacturer has built a car in the US.
Both Porsche and Audi build most of the cars in Germany and Hungary, but the Cayenne was built in Slovakia and the Audi Q5 comes from Mexico.
Year to be implemented
Changes to the company's production plans take years to implement. Production schedules, particularly new vehicles added to Porsche, will require significant investments to the facility. This is suitable for Tennessee and work.
There is none yet as to which Audi or Porsche models can be moved to the Chattanooga assembly plant.
911 is at home
The performance model probably remains in place. Most 911 buyers will likely pay an additional 25% import tax to bite a bullet and get the car. As for Audi, you can build its top-selling Q3 and the popular Q5 and new electric models here.
It is important to remember that customs duties are import taxes paid by importers and are usually passed on to the final consumer. The goal of tariffs is not to raise prices, but to motivate manufacturers to build products in the countries where they sell.
This is a standard operating procedure for many countries, especially China, our top competitor.
And history shows that it rewards building in America.
BMW's American Dream
Consider the example of a BMW that began production of all global SUVs in Spartanburg, South Carolina 30 years ago. Currently, it is the world's largest production facility and BMW is the state's largest employer.
Building cars in the state also provides protection from a variety of geopolitical changes, including the first US president who finally runs the country.
The European automotive company building in Volvo, USA is not the only European automotive company that also produces many of South Carolina vehicles. Mercedes-Benz produces vehicles for the American market in Alabama.
I hope other car manufacturers follow suit. We are watching.
