U.S. tariffs potentially cost Audi billions; fate of American plant yet to be decided
Audi, a German automaker, is grappling with a significant financial burden this year due to import tariffs in the USA, amounting to over one billion euros. The automaker, unlike BMW and Mercedes, does not have its own US plant, and the burden has not been passed on to US customers.
Recent talks between Manfred Döss, the supervisory board chairman of Audi, and representatives of the Trump administration during the IAA (International Motor Show) aimed to clarify several issues, including the possibility of Volkswagen investing in an Audi plant in the USA. However, no final decision has been made.
The potential investment, valued at a billion dollars, is a significant one, given the financial implications. The outcome of potential investments by the VW group in the USA, such as for an Audi plant, in relation to tariffs is still unclear.
According to a manager, Audi is not making a single cent in the USA at the moment. The timing for the decision on the potential investment is currently uncertain, with the planning round for decisions occurring in November and the annual planning round for the VW group, where the decision on the potential investment is made, being approved by the VW supervisory board annually.
The details of the discussions regarding the potential US plant investment are still unknown. Manfred Döss expressed his desire to "finally clear up a few things in the USA." The exact nature of these discussions regarding Audi's potential investments in the USA and their impact on tariffs remains unknown.
The Handelsblatt reports that the decision is being discussed in corporate circles, but no specific date for the decision on the potential US plant has been announced. The potential investment is subject to the decision in the planning round of the VW group. Döss emphasized his intention to make a decision that will help Audi navigate the challenging US market and potentially turn a profit.
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