Audi has temporarily shelved plans for a dedicated manufacturing plant in the United States as part of its delayed five-year planning round, amid mounting pressure to cut costs and reassess investment priorities, according to a report by German business magazine Manager Magazin.
The publication reported that Audi Chief Executive Gernot Döllner presented his five-year strategy to the Audi Supervisory Board in mid-December, including funding requirements that exceeded targets set by Arno Antlitz, the chief financial officer of Volkswagen Group. “There are differing accounts and interpretations regarding the size of the gaps,” Manager Magazin said, adding that the sums involved amounted to several billion euros.
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Döllner has reportedly been tasked with cutting around €5 billion in costs, while a further €2 billion in savings has yet to be identified. A central uncertainty in Audi’s medium-term financial planning remains its U.S. manufacturing strategy. Audi currently operates no factories of its own in the United States, importing most vehicles sold in North America from Europe, with the exception of the Q5 SUV produced in Mexico. This leaves Audi, alongside sister brand Porsche, fully exposed to U.S. import tariffs, unlike rivals BMW and Mercedes-Benz, which operate large U.S. plants.
According to Manager Magazin, Döllner told the Supervisory Board on 12 December that Audi’s own U.S. plant had been “temporarily removed” from the agenda due to cost concerns. The wording suggests the option could be revisited if financial conditions improve.
Despite this, Audi is still expected to localise some production in the United States. One option under consideration is the manufacture of a large Audi SUV at the U.S. plant of Scout Motors, which is currently under construction. The vehicle would likely be based on the Scout platform and could be offered with a range-extender powertrain, a configuration prioritised by the brand.
Another scenario involves producing the MEB-based Audi Q4 e-tron at Volkswagen’s plant in Chattanooga, which already builds the U.S. version of the ID.4. The site is equipped for MEB production, making it a viable option if Audi seeks to expand local output without committing to a standalone facility.
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The uncertainty over Audi’s U.S. strategy has also affected production planning in Europe. Recent decisions to keep the Cupra Born and the Volkswagen ID.3 in Zwickau longer than planned had temporarily improved prospects for the site, which would otherwise have relied heavily on the Q4 e-tron. A potential shift of part of Q4 production to the United States, however, remains a risk.
The unresolved issues help explain why the Volkswagen Group has yet to conclude its planning round, which is usually finalised in autumn. While a group-wide investment framework of €160 billion for the next five years has already been approved, Manager Magazin reported that representatives of the Porsche and Piëch families on the supervisory boards are increasing pressure on management to clarify how and where the funds will be deployed.
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Pressure is also mounting internally at Audi. According to the report, an anonymous employee survey involving around 3,000 staff rated expectations of improvements from Döllner’s reorganisation poorly, with scores ranging from 1.9 to 2.6 on a six-point scale. Döllner reportedly told employees he viewed the outcome as equivalent to a “5+”, a failing grade in Germany, underscoring the challenges he faces as Audi reshapes its global production strategy.
