Volkswagen Group, the world’s second-largest automobile manufacturer, is preparing to move the production of its luxury brand Audi to the United States.
The shift comes amid President Donald Trump’s continued efforts to encourage automakers to invest and build in the U.S. through strategic trade and tariff policies.
World’s second largest carmaker to move manufacturing of luxury brand Audi to US | Thomas Stevenson, The Post Millenial
Volkswagen Group will be moving production to the United States for the German automaker’s luxury brand, Audi.
The second largest carmaker in the world will… pic.twitter.com/DwqhpMMx0H
— Owen Gregorian (@OwenGregorian) May 9, 2025
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The announcement was first reported by the Daily Mail, citing a company spokesperson who confirmed that Volkswagen is actively planning to expand its American footprint for Audi production.
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“We want to localize more strongly in the USA. To this end, we are currently examining various scenarios,” the spokesman said.
“We are confident that we will make a decision on this in consultation with the Volkswagen Group before the end of this year as to what this will look like in concrete terms.”
The company has not yet finalized a location but has narrowed it down to three potential sites.
According to a report from Automobilwoche, the leading candidate is Chattanooga, Tennessee, where Volkswagen currently manufactures the Atlas and Atlas Sport models.
Another site under consideration is in South Carolina, while a third location has not yet been publicly disclosed.
Audi CFO Jürgen Rittersberger also discussed the plan during a recent earnings call.
He said Audi is developing ten new models for the U.S. market, and details about production locations are expected to be released next year.
The decision marks a significant milestone for Audi and reflects a broader trend of foreign automakers increasing their manufacturing presence in the U.S. in response to trade incentives and tariff pressure.
The Trump administration has repeatedly emphasized bringing industrial and manufacturing jobs back to the United States.
Volkswagen now joins other international automakers, including Stellantis and Hyundai, in announcing plans to ramp up production inside the United States under Trump’s second term.
The push to manufacture domestically aligns with Trump’s America First trade policy, which aims to reduce reliance on foreign supply chains and boost domestic employment.
In addition to the automotive developments, President Trump also announced Thursday a new trade agreement between the United States and the United Kingdom.
BREAKING: President Trump announces a historic first new trade deal with the United Kingdom on the 80th anniversary of VE Day, victory in Europe in WW2:
“It’s just incredible that day is the same day we signed a tremendous trade deal for both countries.” pic.twitter.com/UGPi2IAaiE
— Charlie Kirk (@charliekirk11) May 8, 2025
The deal, according to the president, is expected to facilitate millions of dollars in U.S. exports and broaden market access for American-made goods in the UK.
Volkswagen’s move signals growing confidence among international corporations in the stability and appeal of the U.S. market under current trade and economic policies.
Though final production site decisions have not been confirmed, industry analysts anticipate that states with existing auto infrastructure—such as Tennessee and South Carolina—will continue to attract investment due to their skilled workforce and logistical advantages.
A formal decision from the Volkswagen Group on Audi’s U.S. production plans is expected by the end of 2025.
The transition is part of a long-term effort by the automaker to strengthen regional manufacturing and minimize global supply chain disruptions.
More details are expected to be announced in the coming months as the company finalizes site evaluations and consults with state and local governments.
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