Audi Begins Production in the US to Overcome Tariffs
German automaker Audi plans to launch car production in the United States to reduce the impact of customs tariffs. This step will allow the brand to compete with rivals such as BMW and Mercedes, which have long had plants in the US.
Strategy for Entering the North American Market
Audi is strengthening its presence in the North American market by starting car production in the US. This will allow the company to avoid high customs duties that previously complicated the import of vehicles from Europe and Mexico. The new luxury off-road vehicle, aimed at competing with the Land Rover Defender, will become a key product in this strategy.
Collaboration with Scout Motors
The new off-road vehicle with a hybrid engine and range extender will be produced at the Scout Motors plant in Blythewood, South Carolina. Instead of building its own plant, Audi will use the capacities of Scout, which belongs to the Volkswagen Group. The Scout plant plans to start production of its own models, such as the Scout Traveler and Scout Terra, by the end of 2027.
Technical Features of the New Model
Scout Motors revived the brand that previously belonged to International Harvester and now offers models with ladder-frame chassis and all-wheel drive with locking differentials. This will be Audi’s first experience using similar technologies. Most Scout customers choose range-extender versions that provide up to 500 miles of range, while fully electric models offer 350 miles.
Design and Future Expectations
Although Audi has not yet released official images of the new off-road vehicle, the Q6 e-tron Offroad concept presented in 2025 demonstrates the brand’s serious intentions regarding the creation of off-road vehicles. The production model, expected to appear closer to 2028, is anticipated to be larger and have a more angular design, similar to concepts from @theottle.
This move by Audi could significantly change the balance of power in the luxury off-road vehicle market in the US, especially considering the growing popularity of hybrid technologies. Using the Scout platform will allow Audi to adapt faster to American preferences without spending time developing a completely new architecture. Furthermore, localizing production could positively impact the cost of models for the end consumer, making them more affordable compared to European counterparts.