The next Porsche and Audi EVs could be made in the US. Volkswagen is considering moving Porsche and Audi EV production to the US after Trump threatened new tariffs on Europe, Mexico, Canada, and other major trade partners. Here’s how it would work.
Volkswagen mulls building Porsche EVs in the US
Volkswagen is already feeling the pressure after global deliveries fell 2.3% in 2024 to just over 9 million units. The VW Group, including Audi and Porsche, delivered 744,800 EVs last year, down 3.4% from 2023 (771,100).
Although Volkswagen delivered more electric cars in China (+8.3%), it was after a down year in 2023 as it lost market share to EV leaders like BYD. The company said that despite lower EV deliveries in Europe, it “remains by far BEV market leader” with around 21% market share.
In the US, sales of the sole Volkswagen-brand EV, the ID.4, fell 55% last year due to a recall and the rollout of an updated model. VW sold just over 17,000 ID.4s in the US, compared to nearly 37,800 in 2023.
The luxury Porsche brand didn’t fare much better, with Taycan sales slipping 20% year-over-year. Like the ID.4, the Porsche Taycan received a significant refresh this past year. Porsche also began delivering the electric Macan in late 2024.
According to a new report from Germany’s Handelsblatt, Volkswagen is considering expanding US production for Porsche and Audi EVs.
Sources close to the matter told the German newspaper that the group may set up new production sites for the luxury brands.
All Porsche and Audi EVs are currently built outside the US, making them particularly exposed to an increase in tariffs. The Audi Q5 is built in Mexico, while Porsche EV models are produced in Europe.
The move comes after US President Donald Trump proposed a 25% tariff on imports from Mexico and Canada. Most recently, he threatened new tariffs against the European Union (EU), another one of the US’s main trade partners.
According to insiders, Volkswagen’s most likely option is to expand its plant in Chattanooga, Tennessee, where the ID.4 is built.
It could also produce Audi EVs at its upcoming plant in SC, designed for the rugged Scout brand. The report suggests Audi could get a hardcore brand for itself, but that will be after Scout launches in 2027.
Porsche will collaborate with Audi to produce larger electric SUVs in the US, likely the Cayenne EV or the larger “K1” flagship model. The new electric SUVs will be based on VW’s new SSP platform, which will replace its current MEB.
Electrek’s Take
The fresh tariff threats from Trump are the latest headache the Volkswagen Group will have to deal with. It’s already losing market share in key global markets like China as EV leaders like BYD continue gaining momentum with lower-cost and often more advanced vehicles.
Volkswagen is now considering selling multiple German plants they plan to halt production at to Chinese automakers.
After several delays, Volkswagen officially canceled the ID.7, its flagship sedan in the US. The model will only be sold in Europe and China.
With pure EV makers like Rivian and Lucid gaining momentum and a slate of new electric models from GM, Hyundai, Kia, Volvo, Jeep, Dodge, and several others arriving, will Volkswagen be able to keep pace in the US? Expanding local production may be the best option to even the playing field.