Audi's U.S. Plant Plans Face Fresh Turmoil as German Unions Push Back Hard

Audi's plan to build a factory in the United States has once again sparked internal controversy. The German Works Council has explicitly opposed the move, stressing that overseas expansion should not come at the expense of domestic jobs and investments, and demanding clarity on the long-term outlook for Audi’s plants in Ingolstadt and Neckarsulm before any final decision is made. Earlier, Volkswagen Group CEO Oliver Blume stated that large-scale investment would be unfeasible if the U.S. maintains high tariffs, fueling speculation that the project had been shelved. However, Audi CEO Gernot Dörner responded that a final decision on U.S. production has not yet been reached. Currently, Audi is evaluating three potential U.S. factory sites, even as its U.S. sales continue to decline—deliveries for the full year 2025 fell 16% year-over-year, with a sharp 36% drop in the fourth quarter alone. Due to its lack of local manufacturing, Audi has become one of the Volkswagen Group brands hardest hit by U.S. tariff policies.