Mexico instead of the USA: The Audi Q5 is mainly produced at the plant in San José Chiapa. Photo: Audi AG
New York, Düsseldorf. In Chattanooga, the big city in the US state of Tennessee, people seem to be used to Germans hesitating. The Volkswagen Group has been discussing building its own factory for its premium brand Audi in the USA for several months – so far with no result. This is not unusual for Charles Wood. “In a German company, the process of coming to a decision is always slower than in an American company.”
Wood is head of the local chamber of commerce and is currently trying diligently to convince Audi officials of the Chattanooga location. Volkswagen currently operates its only US plant there. Hopes are correspondingly high that Audi will also settle there. They seem to accept the long wait. “The implementation after the decision is always much quicker for Germans than for Americans,” praises Wood.
But when that happens seems to be completely unclear at the moment. The plans for an Audi factory in the USA are stalling. The car manufacturer is faced with a dilemma: Without its own US production, President Donald Trump’s tariffs are hitting Audi with full force. At the same time, there is no money for investments because of the special taxes.
US market is particularly important for corporate strategy
“If the burden of tariffs remains unchanged, a large additional investment cannot be financed,” explained Volkswagen boss Oliver Blume in an interview with Handelsblatt. Discussions with the US government have so far remained fruitless. And these are not the only challenges – the next ones are already waiting on site.