Audi is considering building its first U.S. manufacturing plant, the carmaker told Automotive News.
A new federal tax credit that’s part of the Inflation Reduction Act requires electric-vehicle batteries to be made in North America, among other geographic requirements meant to wean the U.S. from Asian suppliers of EV supplies.
The brand is part of Volkswagen Group, which aims to eliminate internal-combustion models in most of the world by 2035.
An Audi executive told Automotive News that the new measure will affect its strategy in North America, where it currently has one plant, in Mexico. Making EVs in the U.S. could help VW take advantage of the new tax break.
Automotive News said the VW ID4, which is made in Tennessee, is the only EV model in the group that could meet the new tax break’s requirements. All Audi EVs are currently imported into the U.S.