Audi is planning a new SUV designed specifically for the US market and aims to build the model locally through a production partnership with Volkswagen Group’s Scout brand, according to a report by Germany’s Automobilwoche citing unnamed company sources.
The move would represent a strategic shift for the Ingolstadt-based automaker, which has struggled to advance earlier plans for an electric SUV in the US due to shifting tariff policies and the end of federal EV tax credits.
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Audi currently lacks its own manufacturing facility in the United States, relying instead on imports from Europe and Mexico. Earlier proposals considered moving production of the Q8 e-tron to North America, but changing trade conditions and weaker incentives undermined feasibility.
The new plan reportedly centres on an SUV equipped with a range extender rather than a fully battery-electric drivetrain, marking a more conservative approach aligned with recent market trends.
Under the emerging strategy, Audi’s model would share technology and production lines with Scout’s upcoming vehicles at the brand’s new factory in Columbia, South Carolina, which began construction in early 2024.
Scout, revived by the Volkswagen Group to target the American off-road and utility segments, is developing a body-on-frame platform intended to meet US performance and durability expectations. The site is designed for an annual capacity of up to 200,000 vehicles.
The collaboration could offer cost advantages for both brands. With the Volkswagen Group pursuing cost-saving measures globally, the option of leveraging the Scout plant avoids the expense of constructing a new Audi facility.
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The alternative—building a twin plant to Volkswagen’s Chattanooga site—had been considered but reportedly deprioritised as the group reviewed its North American EV investments. Audi would also benefit from reducing development time and gaining access to a platform tailored for US preferences.
Scout’s production strategy has also shifted in recent months. While the brand originally planned two battery-electric models—a pickup and an SUV—it has prioritised range-extender variants following stronger-than-expected pre-order interest. Building an Audi model alongside Scout’s lineup would help improve utilisation of the high-capacity plant, addressing concerns about whether a new brand could fill production volumes in its early years.
