President Donald Trump’s tariff strategy has piqued the attention of international automakers, with foreign carmakers shifting more manufacturing to the United States, particularly with electric and hybrid models.
This week, it was reported that the second-largest automaker in the world, the Volkswagen Group (VW), and its luxury brand, Audi, are now planning to make some of its crossover SUV and electric models in America.
That translates into jobs, industry analysts say.
Currently, most of Audi’s lineup is assembled in Germany, Hungary, Mexico, Slovakia, Spain, and China. But a company spokesman told the Daily Mail this week:
We want to localize more strongly in the USA. To this end, we are currently examining various scenarios. We are confident that we will make a decision on this in consultation with the Volkswagen Group before the end of this year as to what this will look like in concrete terms.
President Trump has argued his 25-percent tariffs will revive American manufacturing after decades of decline. Vehicles manufactured in the U.S. will have a clear price advantage.
According to the German trade magazine Automobilewoche, Audi is scouting three potential locations in the U.S. One is Chattanooga, Tennessee, where Volkswagen currently builds an electric crossover model. Analysts say it could easily adapt to the Audi manufacturing platform.
Reportedly, another potential site is in South Carolina, where VW is breaking ground on a new factory to build electric-based pickups and SUVs under the Scout Motors name.
Ironically, many of the reported relocation plans involve electric vehicles. On the campaign trail, Trump strongly opposed government dictating electric vehicle mandates and argued the market should decide their popularity.
In response to tariffs, both Honda and Hyundai have also announced they plan to manufacture their electric or hybrid vehicles stateside as well. Tesla already is manufactured in the U.S.
Other foreign car companies are taking note. Mercedes-Benz is also expanding its domestic scope, reports Road and Track. The Stuttgart-based manufacturer is set to add another model to its Tuscaloosa, Alabama, plant starting in 2027.
BMW is already well equipped to deal with the new tariff policy, the car magazine reported, as it produces its bestselling U.S. models at its Spartanburg, South Carolina facility.
Other foreign automakers like Volvo, Subaru and Toyota also currently manufacture models in the U.S., with many of their plants located in southern states.
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