Volkswagen considers US production sites for Audi and Porsche to counter tariff threats
January 29, 2025
According to German newspaper Handelsblatt, Volkswagen is considering establishing production sites in the United States for its Audi and Porsche brands to avoid potential repercussions from tariffs threatened by President Donald Trump.
The publication cited several people familiar with the situation, who reportedly stressed that the two high-end brands were particularly exposed to the US trade barriers as they do not currently produce in the US.
During his inauguration speech, Donald Trump emphasised his goal of increasing car production in the United States. Although the President has not yet provided specific details about his plans, he mentioned policies such as eliminating subsidies for US electric car production, scaling back emissions regulations, and imposing tariffs on all imports. This is bad news for European carmakers as it would mean that anyone who doesn’t make their product in the US will have to pay a tariff.
Volkswagen is particularly vulnerable as it is said to heavily rely on Mexican factories and Trump is threatening 25% tariffs on Mexico and Canada.
Volkswagen expressed its concern about these tariffs in an email statement to Reuters, stating, “The Volkswagen Group is concerned about the harmful economic impact that proposed tariffs by the US administration will have on American consumers and the international automotive industry.”
