Plans of Volkswagen subsidiaries unveiled, showcasing unexpected elements
Audi, a subsidiary of Volkswagen, is reportedly considering building a new manufacturing plant in Chattanooga, Tennessee, near Volkswagen’s existing facility, to avoid high US tariffs on imported vehicles.
The proposed plant could have a production capacity of up to 200,000 units, according to sources familiar with the matter. This move would enable Audi to access the US market more efficiently and reduce tariff costs.
Currently, Audi relies on imports from Europe and Mexico, both subject to rising tariffs. The import from Mexico is currently subject to a 25% tariff in the USA, which is set to rise to 30%, while the import from the EU has become expensive, with tariff rates recently reduced to 15% after having been temporarily raised to 27.5%.
The potential plant in Chattanooga would benefit from Volkswagen’s established infrastructure and supplier network, potentially lowering costs and accelerating setup. Audi’s interest reflects rising trade tensions and tariff hikes, motivating a local US assembly plant to reduce tariff burdens on Audi vehicles.
However, as of August 2025, no official Audi announcement confirms a finalized decision. The main reason for these considerations is the significantly increased US tariffs, which have made the import of vehicles from the EU and Mexico more expensive for Audi.
Audi’s CEO Gernot Döllner aims to increase sales in the USA to 300,000 to 400,000 vehicles per year in the long term. Worldwide, Audi aims to sell up to 2.3 million cars per year. If the plant is built, it could help Audi reach these sales targets in the USA.
In other news, Audi is offering an NKL Extra-Joker voucher to customers who place an order for the NKL Millionenspiel between August 16, 2023, and October 1, 2023. Every customer who places an order will receive an email with a voucher code for the NKL Extra-Joker after the order is placed. The voucher can be used exclusively for online orders on www.guenther.de and for new customers of the State Lottery Agency Günther KG.
Stay tuned for updates on Audi’s potential plant in Chattanooga. The decision about the construction of the plant remains pending.
The potential Audi plant in Chattanooga could provide a strategic advantage in the automotive industry by offering access to the US market, reducing tariff costs associated with transportation and finance, given the escalating tariffs on imports from Europe and Mexico. If constructed, the plant might assist Audi in meeting its ambitious sales goals in the US, as outlined by CEO Gernot Döllner.
