VW Might Build Audi And Scout Factories In The US

Industry News / 9 Comments

It's all about taking advantage of Inflation Reduction Act subsidies.

Audi CEO Markus Duesmann confirmed in a recent interview that the luxury brand is considering building a factory in the United States in order to take advantage of subsidies being made available from the $430 billion Inflation Reduction Act (IRA). Speaking to German language Frankfurter Allgemeine Sonntagszeitung, per Automotive News Europe, Duesmann added that a decision has not been made just yet.

Presently, all Audi models are made outside of the US, unlike rival BMW which has long had its massive Spartanburg, South Carolina plant pumping out SUVs for the US and the world. But what's also quite interesting about this report is that parent company Volkswagen Group is planning a new plant for its new Scout brand, which it acquired back in 2021.

2022-2023 Audi e-tron GT Driving Front Angle Audi
2022-2023 Audi e-tron GT Driving Back View Audi
2022-2023 Audi e-tron GT Central Console Audi

Former Volkswagen of America CEO Scott Keogh is now leading Scout, which will be an EV-only off-road truck and SUV company with its own unique platforms. Scout is now scheduled to begin production in 2026 but we still don't know which state the production plant will call home. Previously, VW had considered building the facility in partnership with contract manufacturers, specifically Foxconn and Magna. It has ultimately decided to do the project solo.

"The decision to build the plant ourselves is available as a draft resolution and has thus been taken," company sources confirmed. As for Audi, Duesmann's comments clearly indicate he's keen on establishing a US factory presence. "We do not have a factory in the U.S. yet. With the American government's Inflation Reduction Act, building a US plant for electric cars has of course become highly attractive."

Whether Audi will have the plant all to itself or it'll share it with other VW brands remains undecided.

2019-2023 Audi e-tron Front Angle View Audi
2019-2023 Audi e-tron Rear Angle View Audi
2019-2023 Audi e-tron Armrest Audi

"Both are possible. But the probability that we do it within the group is high," Duesmann added. If the plant does receive the green light, it's a foregone conclusion Audi will build EVs in the US. Existing EVs, such as the e-tron and e-tron GT, will probably continue to be built in Europe for the foreseeable future.

VW Group has already committed to launching over 25 new EVs through 2030 across all of its brands, and it will localize things such as design and engineering for North America by 2030. Already, VW has its Chattanooga, Tennessee plant producing the ID.4 with the goal of manufacturing 90,000 EVs this year. Once Scout is launched, VW wants to sell 250,000 units annually.

Volkswagen AG
Volkswagen AG
Volkswagen AG

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