Report: Audi Might Build a U.S. Factory in Response to Tariffs
If built, Audi’s new factory would likely be in the southern United States and could cost around $4.6 billion to construct. What could be built there? Possibly the popular Q5.
Audi is discussing the construction of a new factory in the United States, according to a new report from German publication Der Spiegel via Automotive News.
Audi is said to be looking at the southern U.S., and the German news site’s sources said it could cost around $4.6 billion to build.
There’s no word on what would be built there, but the popular Q5 SUV, currently made in Mexico, seems like a likely choice.
The tariffs on imported vehicles implemented by the Trump administration have shaken up the car industry and led several automakers to investigate investing more heavily in production stateside. Now Audi may be considering building a new factory in the United States, as reported by German news website Der Spiegel via Automotive News. The move is reportedly being discussed as a potential way to appease President Trump in regard to tariffs.
The report states that Audi is looking at the southern United States for its new factory, and that company sources estimate a cost of around $4.6 billion. We’ve reached out to Audi for comment and will update this story when we receive a response.
It’s unclear what this factory could be destined to build, but the compact Q5 SUV (pictured at top) seems like a good candidate. The Q5, which just entered a new generation for the 2025 model year, is Audi’s bestseller and is currently assembled in Mexico. Other possibilities include the Q3, currently built in Hungary, and the Q7, assembled in Slovakia.
More Brands Looking to U.S. Plants
This isn’t the first time there have been rumors about Audi and U.S. production. In May, a report from German newspaper Automobilwoche suggested that Audi could produce cars at three different locations in the U.S. by making use of parent company Volkswagen’s existing facilities. Volkswagen currently builds the Atlas SUV and the ID.4 EV at its factory in Chattanooga, Tennessee, and is constructing another factory for the incoming Scout brand outside Columbia, South Carolina.
Audi isn’t the only automaker investing more into building cars in the U.S. Earlier this month, GM announced it was adding production of the Mexico-made Equinox to its Fairfax plant in Kansas in 2027. The Blazer, also made in Mexico, will also be added to the Spring Hill, Tennessee, facility in 2027.
Meanwhile, Honda is shifting U.S.-market CR-V production away from Canada and towards its factories in Indiana and Ohio, and Nissan is reportedly thinking about moving Sentra assembly out of Mexico.