German automaker Volkswagen is reportedly exploring the possibility of establishing production facilities in the United States for its premium Audi and Porsche brands. The move is aimed at mitigating potential fallout from tariffs threatened by U.S. President Donald Trump, according to Handelsblatt.
Sources familiar with the discussions suggest that Audi and Porsche are particularly vulnerable to any new trade barriers, as these luxury brands currently lack manufacturing operations in the U.S. This leaves them more exposed compared to Volkswagen’s core brand, which already produces vehicles domestically.
The consideration aligns with broader industry efforts to adapt to evolving trade dynamics and minimise the impact of potential tariffs on vehicle imports. Setting up local production would not only shield the luxury brands from potential financial penalties but could also align with U.S. trade policies that encourage domestic manufacturing.
Volkswagen has not issued an official comment on the matter, leaving the specifics of these potential investments and timelines uncertain.
This development underscores the increasing pressure global automakers face in navigating geopolitical shifts and trade policy changes, particularly in critical markets like the United States.
