LISTEN: Volkswagen Chief Puts Plans for U.S. Audi Factory on Ice

https://www.ien.com/video/video/22959340/volkswagen-chief-puts-plans-for-us-audi-factory-on-iceIn spring of 2025, after a flurry of tariffs were announced, foreign automakers were in crisis mode. Among them was Volkswagen, a German company with a substantial US footprint for some brands, such as VW, but a non-existent one for others, like Audi.Specifically, Audi vehicles have thus far been produced at plants in both Germany and Mexico. Due to the April tariffs proposed on foreign-made vehicles, VW suggested at the time that perhaps an Audi production base on US soil was in the cards. It was never certain whether this US-made Audi would mean a new factory or simply adding production capabilities at an existing plant: this could be VW’s Tennessee manufacturing compound or a new factory currently being built in South Carolina to manufacture the Scout line. A June report even suggested that Audi was considering building a greenfield site in the south with a price tag north of $4 billion, though the company didn’t confirm these details, choosing to say, instead, that it was continuing to evaluate its options.But right now, none of these options are looking good. VW CEO Oliver Blume recently told German media outlet Handelsblatt that plans for a potential US factory for Audi are not progressing.Blume said the prospect is too expensive based on the added cost burden Volkswagen has taken on with tariffs – a shift that has cost the automaker a reported $2.5 billion in the first three quarters of 2025. Talks between VW and local officials were also said to have been unsuccessful – meaning no additional financial incentives for a potential factory project or expansion had been established.Said Blume, “Given an unchanged tariff burden, large additional investment cannot be funded,” adding: “Reduction of costs in the short term and reliable business conditions in the long term are what we need.”Blume believes VW can still grow its U.S. business, but as evidence of its changing expectations, the company walked back a previously stated goal of capturing 10% market share in the United States, and will instead pursue more gradual progress.#Volkswagen, #Audi, #AutoIndustry, #AutomotiveNews, #ManufacturingNews, #Tariffs, #USTradePolicy, #ForeignAutomakers, #USManufacturing, #AutoManufacturing, #ElectricVehicles, #GlobalSupplyChain, #FactoryExpansion, #GreenfieldProject, #EconomicImpact, #AutomotiveMarket, #OEMs, #IndustryTrends