Porsche: As American as apple pie? Trump tariffs might mean move to USA

Are you ready for a made-in-the-USA Porsche?

It could happen. Thanks to President Trump’s planned import tariffs, Porsche parent company Volkswagen is considering moving production of some vehicles to its Chattanooga, Tennessee, plant.

Making cars in the states also offers protection from various geopolitical shifts, such as an America-first president finally running the country.

The plant currently makes the gasoline-powered Atlas and Atlas Cross Sport, as well as the ID.4 EV. As with many EVs, sales of the ID.4 are lower than expected, meaning that it might make sense to use that capacity on a different model.

Chattanooga bound?

The German car manufacturer might also move production of some Audi models stateside, either to its Chattanooga plant or its in-development South Carolina plant. That plant, which will manufacture the new line of EV SUVs from Scout Motors, is set to open in 2027.

The tariffs are aimed at vehicles built in Canada, Mexico, and Europe, which leaves Audi and Porsche particularly exposed; neither automaker has ever built a car inside the United States.

Both Porsche and Audi build the majority of their cars in Germany and Hungary, though the Cayenne is built in Slovakia and Audi’s Q5 comes from Mexico.

Years to implement

Any changes to the company’s production plan would take years to implement. Any new vehicles added to the production schedule, particularly Porsches, would require adding significant investment to the facility. This would be good for the state of Tennessee and jobs.

There isn’t any word yet as to which Audi or Porsche models could be moved to the Chattanooga assembly plant.

911 stays home

The performance models will likely stay put. Most 911 buyers will probably bite the bullet and pay an additional 25% import tax to get that car. As for Audi, its top-selling Q3 plus the popular Q5 and newer electric models could be built here.

It’s important to remember that a tariff is an import tax paid by the importer and usually passed along to the end consumer. The goal of the tariff is not to increase prices but to motivate manufacturers to build their products in the country they’re selling to.

This is standard operating procedure for many countries, especially our top competitor, China.

And history shows it pays to build in America.

BMW’s American dream

Take the example of BMW, which started producing all of its global SUVs in Spartanburg, South Carolina, 30 years ago. It’s now the automaker’s biggest production facility in the world, and BMW is the largest employer in the state.

Making cars in the states also offers protection from various geopolitical shifts, such as an America-first president finally running the country.

BMW is not the only European car company building in the U.S. Volvo also produces many of its vehicles South Carolina. Mercedes-Benz produces vehicles for the American market in Alabama.

Here’s hoping other carmakers follow suit. We’ll be watching.