Audi could set up new production plant in the US in response to Trump’s tariffs – report

The report says that Audi is eyeing the potential for a new factory location in the US in responding to Trump’s tariffs. However, no firm decision has been made yet with Audi CEO believed to be waiting for at least a permanent tariff agreement between the EU and the US. That being said, a definitive decision is expected by this year-end with the automaker wanting to react quickly if need be to the situation.

With Audi being a Volkswagen subsidiary, they could leverage off the existing plant in Tennessee but it appears the company is of the view that a new plant will give it better prospects. The location of the new plant is reportedly set to be in southern US with roughly 3,000 to 4,000 workers being employed.

The report adds that while leveraging off the Volkswagen plant might be the easiest solution, it might not be that simple. The workers in Tennessee have been represented by the UAW since 2024, with the union negotiating an agreement with Volkswagen for more than 25% wage increases over the next five years.

As such, Audi setting up a new production plant would at least help them to avoid dealing with that increase in union pay for now.

This article was written by Justin Low at www.forexlive.com.