Volkswagen may expand its Chattanooga, Tennessee, plant to produce Porsche and Audi models in the U.S. for the first time
Porsche and Audi are considering U.S. production if the Trump administration enacts significantly higher tariffs on vehicles imported from Europe and Mexico, according to a recent report. These potential tariffs, which could take effect as early as February 1, 2025, pose a major challenge for both brands, as they currently import all their U.S. models.
Citing German business newspaper Handelsblatt, Automotive News reports that Porsche and Audi are especially vulnerable to the proposed tariffs. Porsche sources all of its models—including the 911, 718, Panamera, Taycan, and Macan—from Germany, while the Cayenne is built in Slovakia. Audi’s Q5 is produced in Mexico, with the rest of its lineup imported from Europe.
While neither brand can establish a U.S. production facility overnight, sources told Handelsblatt that Porsche and Audi could turn to parent company Volkswagen to mitigate the financial impact. One possibility under evaluation is expanding Volkswagen’s Chattanooga, Tennessee, plant, which currently produces the Atlas and ID.4. The facility has excess capacity and could potentially be scaled up for additional models. Audi is also open to using Volkswagen-owned Scout’s upcoming South Carolina factory, set to begin production in 2027, though that timeline would not provide an immediate solution.
As of now, President Trump has not officially confirmed the new tariffs will take effect on February 1. While he frequently referenced them during his campaign, they remain a looming possibility rather than a finalized policy. The exact tariff rates also remain undecided, though Trump recently suggested a 25% tariff on imports from Mexico and Canada.
“The European Union is very, very bad to us, so they’re going to be in for tariffs. It’s the only way… you’re going to get fairness,” Trump stated.
Volkswagen, which manufactures several models in Mexico—including the Tiguan—has voiced concern over the economic consequences of new tariffs, warning that they could negatively impact American consumers and the global auto industry.
Porsche and Audi have never built vehicles in the U.S., and it remains unclear which models they would produce domestically if forced to do so. Neither company has commented on the report.
Growing up with a father who was a mechanic I had an appreciation for cars and motorcycles from an early age. I shared my first bike with my brother that had little more than a 40cc engine but it opened up a world of excitement for me, I was hooked. As I grew older I progressed onto bigger bikes and…
