Porsche And Audi Plan To Manufacture Cars In The US

US President Donald Trump previously stated that he might impose extra tariffs on imported cars, prompting Porsche and Audi to consider production within the United States.

Unlike BMW, Mercedes, and Volkswagen, neither Porsche nor Audi currently manufactures vehicles in the U.S. Audi assembles the Q5 in Mexico, potentially facing a 25 percent tariff. In comparison, all of Porsche’s cars are produced in Europe and could incur a 10 percent levy upon arrival in the U.S.

Now, both companies are exploring the option of manufacturing vehicles at Volkswagen’s Chattanooga facility, according to a report from the German newspaper Handelsblatt. The Tennessee plant, which currently produces the Atlas SUV and the ID.4 electric SUV, has significant unused capacity due to a sharp decline in demand. Sales of the ID.4 in the U.S. plummeted 55 percent last year.

Another option reportedly being considered is for Audi to share production space with Volkswagen’s new Scout EV at a site in South Carolina currently under construction.

The report suggests that Porsche will not relocate existing production but will instead use the US as a base for the production of larger SUVs, along with Audi.

Porsche North America increased sales to 76,167 vehicles last year from 75,415 in 2023, while Audi’s sales fell 14 percent to just 196,576.

Any new tariffs could be a problem for both brands and for Volkswagen, which makes the Jetta and Tiguan in Mexico. The Volkswagen Group could lose 15 percent of its operating profit just from the threatened 25 percent tariff on imports from Mexico.

• Also See: Porsche Is Thinking Of Releasing A New Gasoline-Powered Macan