Volkswagen to Manufacture Audi in the US to Avoid Tariffs

Volkswagen CEO Oliver Blume announced that the German company is considering moving part of its luxury brand Audi production to the United States in an attempt to avoid new tariffs ordered by US President Donald Trump on car imports.

In an interview with the German newspaper Frankfurter Allgemeine Zeitung, Blume said that the company, Europe’s largest automaker, is holding constructive talks with the US administration on the issue, adding that Volkswagen wants to “do everything it can to remain a reliable investor and partner in the United States.”

Blum explained that Audi production in the United States would be in line with its development strategy. However, he ruled out manufacturing Porsche cars in the US, despite the US market being the largest for the luxury sports car brand. He attributed this to Porsche’s annual sales in the US market of only 70,000 vehicles, a figure too small to justify investment in local manufacturing there. Last March, US President Donald Trump announced a 25% tariff on cars imported to the United States, the primary destination for German car exports.

Volkswagen, which includes brands such as Audi, Porsche, Seat, and Skoda, is among the companies most affected by these tariffs. The group sold more than one million vehicles in North America last year, representing approximately 12% of its total global sales.

With Volkswagen’s sales declining in the Chinese market due to fierce competition from local companies, particularly in the electric vehicle sector, the US market has become increasingly important to the German company.

Despite Volkswagen’s plant in Tennessee, 65% of Volkswagen’s US sales are imported from Europe or Mexico, with this percentage rising to 100% for Audi and Porsche.