Audi is eyeing a US factory to take advantage of the subsidies

“Decisions have not been made yet, but the Volkswagen Group will most likely build more cars there in the future for the American market,” Dussmann said.

The Inflation Reduction Law includes subsidies and tax incentives aimed at stimulating local investment in a range of green industries. They include a $7,500 tax credit for electric vehicles made in the United States that is designed to reduce the financial burden of ownership.

Audi is among a group of major automakers that have invested heavily in electric vehicle production in recent years. They’re chasing a recent spike in unrealized demand for such vehicles, a trend spurred by increasingly generous tax benefits in the United States and Europe.

Audi has committed to only producing electric cars starting in 2026 and has upgraded two of its factories in Mexico to produce fully electric cars soon, according to the company. Reuters. It has not yet established its own factory in the United States, although Volkswagen already produces the electric ID. 4 at a plant in Chattanooga, Tenn.

Agnes Schwägerl, Head of Communications for International Sites at the Audi Group, confirmed that no official decision had been made regarding a US factory. “The US market is very important to us,” said Schweigerl.

This is a developing story. It will be updated.