Could Volkswagen be considering moving production of Porsche and Audi vehicles to the US? If they want to avoid tariffs they will make some moves. Volkswagen said to be weighing production for Audi, Porsche vehicles in US in the VW Chattanooga Tennessee plant.
President Trump has threatened import tariffs on automobiles, ranging from 25% to 300%, but the administration seems poised to launch a new raft of import tariffs.
Why are they placing tariffs on cars made outside the U.S.? Because the Trump administration wants jobs and manufacturing to return to the states. If they choose not to, there will be hefty tariffs that will make selling these vehicles even more expensive.
The incoming punitive tariffs are aimed at vehicles built in Canada, Mexico and the European countries, which leaves Audi and Porsche particularly exposed, as neither automaker has ever built a car inside the United States. Audi does have a plant in Mexico, but all Porsches are built in Europe.
In order to avoid being hit with these difficult tariffs, parent company Volkswagen Auto Group is considering expanding its Chattanooga facility to produce some American made Porsches and Audis, according to reports from Germany’s Handelsblatt newspaper.
Both Porsche and Audi build the majority of their cars in Germany and Hungary, though the Cayenne is built in Slovakia and Audi’s Q5 comes from Mexico.
Any changes to the company’s production plan would take years to implement, possibly not even completing the new production lines in 2029. The Chattanooga facility currently produces Volkswagen’s ID 4 electric SUV, as well as gasoline-powered Atlas and Atlas Cross Sport. Any new vehicles added to the production schedule, particularly Porsches, would require adding significant investment to the facility. This would be good for the state of Tennessee and jobs.
There isn’t any word yet as to which Audi or Porsche models could be moved to Chattanooga Assembly plant. I believe Porsche’s volume sellers are the crossover, Porsche Macan and Cayenne SUVs would likely be produced in the US.
If Porsche buyers were asked to pay an additional 25% import tax for something like a 911, I sure the buyers will likely still purchase the supercars. For Audi, their top-selling Q3 plus the popular Q5 and newer electric models could be built here.
It is important to remember that a tariff is an import tax paid by the importer and usually passed along to the end consumer. The goal of the tariff is not to increase prices but to motivate manufacturers to build their product in the country they’re selling to. This is done in other countries around the world, like the U.S.’s top competitor, China.
Other German companies like BMW saw the writing on the wall and started producing all of their global SUVs in Spartanburg, South Carolina 30 years ago. BMW produces multiple product lines in the state and is the largest employer on SC. This smart move protects BMW from many geopolitical shifts and tariffs.
BMW is not the only European car company building in the US. Volvo also produces many of their vehicles in the US in South Carolina as well. Mercedes Benz produces US sold vehicles in Alabama. Let’s see what other brands will do, we will be watching.
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Lauren Fix, The Car Coach is a nationally recognized automotive expert, media guest, journalist, author, keynote speaker and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and safety issues for both the auto industry and consumers. Her analysis is honest and straightforward.