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Tariffs hamper VW’s plans for US investment, including speculated Audi plant in Chattanooga

New cars of German car manufacturer Volkswagen and Audi are parked on a freight train in Munich, Germany, Monday, July 28, 2025. (AP Photo/Matthias Schrader)
New cars of German car manufacturer Volkswagen and Audi are parked on a freight train in Munich, Germany, Monday, July 28, 2025. (AP Photo/Matthias Schrader) New cars of German car manufacturer Volkswagen and Audi are parked on a freight train in Munich, Germany, Monday, July 28, 2025. (AP Photo/Matthias Schrader)

Further investments by the Volkswagen Group in the U.S. — including building a new Audi plant in the country — aren’t financially feasible under existing tariffs, CEO Oliver Blume told a German publication.

The newspaper, Handelsblatt, reported last year that Audi was considering a “twin plant” in Chattanooga, where its parent company already operates a facility, although insiders told the paper the move could pose risks for the brand. Audi is a subsidiary of Volkswagen.

An Audi spokesperson, Michele Lucarelli, said in an August email to the Chattanooga Times Free Press that the company can’t comment on speculation and didn’t have any news to confirm.

Blume told Handelsblatt in a story published Sunday that tariffs cost the company 2.1 billion euros — equivalent to about $2.5 billion — in the first nine months of 2025.

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