Audi looks to US factory to take advantage of subsidies

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Volkswagen-owned Audi is considering building a US plant to take advantage of new federal subsidies, the automaker’s CEO said Friday.

Commenting on the German newspaper Frankfurter Allgemeine Zeitung, Audi CEO Markus Duesmann said subsidies provided by the Biden administration’s Inflation Reduction Act made the prospect of a US factory “much more attractive”.

“No decisions have been made yet, but the VW Group is likely to make more cars there for the US market in the future,” said Duesmann.

The Inflation Reduction Act includes subsidies and tax incentives designed to encourage domestic investment in a range of green industries. It includes a $7,500 tax credit for US-made electric vehicles designed to reduce the financial burden of ownership.

Audi is one of many major car manufacturers that have invested heavily in electric vehicle production in recent years. They are chasing a recent surge in unmet demand for such vehicles, a trend spurred by increasingly generous tax breaks in the United States and Europe.

Audi has committed to producing only electric vehicles from 2026 and will soon upgrade two of its plants in Mexico to produce all-electric vehicles, according to Reuters. It has yet to set up its own factory in the United States, although VW already produces the electric ID. 4 at a factory in Chattanooga, Tenn.

Agnes Schwägerl, Audi Group’s head of communications for international locations, stressed that no formal decision has yet been made on a US plant. “The US market is extremely important to us,” said Schwägerl.

This is an evolving story. It will be updated.


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