This oooo Intel file is part of an ongoing series that typically follows upcoming Audi models from the rumor phase to spy photos and ultimately to production. In this case, I’m expanding the scope to cover rumors and updates around the ongoing trade war tariffs and associated potential changes to add American production. These reports will be regularly updated as new information is reported. Find our other oooo Intel reports HERE.
This is one of the most inquired-about subjects going on today, so making a place to track this intel is called for.
Subject(s):
- U.S. Tariffs towards Audi models built in other markets
- Plans and rumors of Audi’s reaction to manage imposed tariffs
- Plans and rumors of plans for U.S. domestic production
CURRENT THEORY SUBJECT TO UPDATE BASED ON INTEL
Earlier this spring, the Trump administration in the United States placed a 25% tariff on cars produced outside the United States. With Audi having no domestic U.S. production, this caused Audi and other Volkswagen Group brands to place a pause on shipments from port, hoping to weather however much of the storm they could by relying on current inventory already “on the ground”, brought in before the tariffs were in place.
The timing is a real challenge for Audi. A big part of the company’s range has just been refreshed, while other new additional models such as the A6 e-tron are just around the corner. After last year’s lagging sales, the brand was looking forward to a major boost thanks to an avalanche of new product beginning this year.
It appears some of that product such as the all-new A5 / S5 sedan (B10) and all-new Q5 / SQ5 had already been staged here awaiting launch, because those cars have begun showing up in dealer inventories. For now at least, nothing really seems all that different for Audi customers. What this means though for consumers who special ordered cars, new models that weren’t pre-staged, or replenishing existing inventory remains to be seen.
In the meantime, Audi is looking seriously at U.S. production options. This could include utilizing the Volkswagen factory in Chattanooga for production. That facility produces MQB and MEB products, making it likely most easily compatible with the production of A3, Q3 and Q4 e-tron or their derivatives. While Scout’s South Carolina factory also gets named, that factory is still at least a year from producing anything.
The Trump administration has shown a willingness to work with certain markets and manufacturers as happened on May 8 when tariffs on British automobiles were lessened to 10%. While this will help Bentley, that doesn’t help the Audi brand and Bentley’s UK production facility isn’t set up for producing any Audi products. For background, the Bentley Bentayga SUV is based on Audi’s MLB architecture and is effectively produced in England, its body is manufactured at the Volkswagen Zwickau-Mosel Plant in Germany. Further, it’s doubtful that the Bentley facility has enough capacity to make any real impact on the Audi business.
Audi has also shared it was already evaluating a U.S. plant prior to the tariffs being applied and has promised a final decision on this by the end of the year. It’s possible that via Audi’s own commitment shifting production or building a factory, or EU negotiations, could all play a role in shifting tariffs down as they did with England.
RUMOR TIMELINE REVERSE CHRONOLOGICAL ORDER
05.12.2025 Audi Anticipates Clarity on U.S. Tariffs as Trade Talks Progress
source: CBTNews
- Audi CEO Gernot Döllner anticipates more bearable tariff regulations in the coming months as ongoing talks between Brussels and Washington continue.
- Döllner confirmed Audi looking to establish production in the United States and is considering VW/Chattanooga, Scout/Columbia options as well as building its own factory.
05.08.2025 U.S.-U.K. trade deal: From Ford to McLaren, steel to beef, impact to be limited, says freight CEO
source: CNBC
- The Trump administration reached a deal with the United Kingdom that sees automotive tariffs lessened from 27.5% to 10%, offering relief to British manufacturers.
04.30.2025 Volkswagen Warns Tariffs, Other Challenges Could Weigh on Guidance
source: Wall Street Journal
- Audi parent Volkswagen said tariffs, growing competition and more stringent carbon-emissions regulation could hurt sales, cash flow and liquidity this year, taking a more cautious position as it seeks to understand to what extent U.S. trade policies might affect its business.
04.23.2025 Audi Nears Decision on First U.S. Plant
source: Wall Street Journal
- WSJ caught up with Audi CEO Gernot Döllner at Auto Shanghai
- Döllner said Audi was moving “full throttle” toward final decision on building first U.S. factory, likely located near one of parent Volkswagen’s facilities
- Audi also considering using Volkswagen factory in Chattanooga, TN., to build Audis as short-term stopgap
- “We will stay in the U.S. market, and we will find a way to be part of that market and to grow in North America.”
- In the meantime, Audi will likely adopt combination of price increases in U.S. and other steps to manage tariffs.
- Revealed Audi had already been working on plans for its own U.S. plant before the current administration took office. Such a plant would take 3.5 to 4 years to complete and make the most sense near an existing VW Group facility due to supplier infrastructure.
- Decision on Audi plant will be made this year.
04.21.2025 VW Group CEO Comments on U.S. Production for Audi in Response to Tariffs
source: ooooIYKYK
- Oliver Blume shared that he is negotiating investments directly with the American administration
- Part of the strategy is for Audi to reposition to include American production.
- Analysis of Chattanooga, TN VW Facility and Columbia, SC Scout Facility
04.09.2025 VW Group Freezing U.S. Imports, Audi Holding Cars at Port Due to 25% Tariff
source: ooooIYKYK
- In reaction to the 25% tariff announced by the White House this week, the Volkswagen Group has moved to react to the minimize losses by halting imports of cars into the United States. The move includes Audi.