Image Credit: Audi USA / Facebook
The Tennessee Conservative [By Olivia Lupia] –
German-based auto manufacturer Audi is considering constructing a production plant in Chattanooga next to its parent company Volkswagen Group’s already-existing plant.
The move is reportedly spurred by the European Union’s new trade deal forged by President Trump which imposes 15% tariffs on European autos and auto parts and means thousands of new jobs could be brought to the area.
Several German publications with sources inside Audi have reported that the option is on the table for the auto giant, though there is not yet a timeline for any official decisions.
The new plant would tentatively be constructed as a “twin plant” near the Volkswagen (VW) facility at Enterprise South Park in Chattanooga which currently produces the Atlas SUV and ID.4 electric vehicles.
Though another location in South Carolina is also being considered, building in Chattanooga would provide the company with certain strategic advantages like tapping into existing VW planning logistics infrastructure, which would reduce construction time and costs, and the utilization of established distribution and supplier networks.
The overall cost to build at the Chattanooga location is estimated at around $4 billion and could take at least two years to complete. Audi currently has no production footprint in the United States, relying on exports from its European Union (EU) sites and a facility in Mexico which has been operational since 2016.
Several analysts have stated there will be numerous benefits to the relocation to America of Audi’s auto manufacturing incentivized by the increased tariffs on both the EU and Mexico.
Karl Brauer, executive analyst at iSeeCars.com, said, “It’s time to get on the stick and join [Audi’s] primary competitors in the U.S.-based, tariff-avoiding world. Many automakers are now rightfully acknowledging that even though they could save more money producing cars in Europe, Canada, Mexico, or China, that can turn on a dime depending on who is in the White House.”
“Building in the U.S. will never be a penalty. There will never be a cost downside,” Brauer added.
University of Tennessee Chattanooga economist Dr. Howard Wall believes a new factory could have positive impacts for the city as a whole.
“It might be a bit muted compared to when Volkswagen came, because that was a big jolt. And this would be like adding on to that. I don’t really see any downsides to it, except, you know, if they’re doing it only because of these tariffs, and then the tariffs are thrown out in court, or the next president just gets rid of them… They might be stuck. But, you know, for the area, it’s mostly a pretty good thing, I think,” Wall remarked.
The proposed Chattanooga site could see an annual capacity of 150,000-200,000 vehicles, though it remains unclear for the moment which models might be built there, and could boost Audi’s U.S. volumes to between 300,000 to 400,000 units per year.
About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.
One Response
Excellent article. Thank you