Audi And Porsche Are Different About The News Of Their Luxury Car Production In The US Due To The Increase In Import Duty

Audi Q5. (Doc. Audi AG)

JAKARTA The policy of increasing import duties for goods and imported vehicles announced by the administration of the new President of the United States (US), Donald Trump, has begun to have an impact on the global automotive industry. Automotive manufacturers are now considering producing their vehicles locally to avoid a spike in import costs.

As previously reported by VOI, one of the world's automotive giants, Volkswagen Group, is evaluating the possibility of assembling vehicles in the US for several of its brands, including Porsche and Audi. Citing a report from German media Handelsblatt, Friday, January 31, unnamed sources stated that the two premium brands have the potential to start assembling vehicles in Uncle Sam's country.

Although there has been no official announcement yet, Volkswagen Group is likely to take advantage of the Scout Motors factory currently under construction in South Carolina. The plant is designed to manufacture electric vehicles and is projected to assemble SUV-style Travelers and pickup-shaped Terra models.

With facilities focused on the production of electric vehicles, it is possible that Audi will switch production of the E-Tron line to the US to secure tax incentives and reduce dependence on imports.

Apart from South Carolina, Volkswagen Group is also reportedly considering another option, namely to locally produce Audi and Porsche in Chattanooga, Tennessee. Currently, the facility is the base for Volkswagen Atlas and ID.4' two quite popular crossover models.

With the increasing SUV trend, it is not impossible that Volkswagen Group will take advantage of this facility to assemble the Audi Q5 or Porsche Macan model locally, making it more competitive in the US market.

Audi Opens Voice, Porsche Still Silences

Regarding the possibility of production in the US, Porsche refused to comment. However, in contrast to his brother, Audi publicly affirmed his commitment to the US market.

"AS is the key to Audi's global success, and we focus on sustainable and responsible growth through transformation," said the Audi representative, quoted from Motor1.

Volkswagen Group's move reflects changes to the automotive industry's strategy in dealing with increasingly stringent protectionism policies. If this plan is realized, the presence of European-made premium vehicles in the US will be even stronger.