Audi's works council issues a caution about establishing a plant in the U.S. - Döllner pens a letter to the management
In a recent meeting at Audi's Ingolstadt-based facility, Jörg Schlagbauer, the works council chairman, discussed the utilization of German production sites and expressed that they are not being utilized to their full potential [1]. However, the focus of the meeting shifted towards the U.S. market when Schlagbauer announced that Audi can leverage the existing Volkswagen Group infrastructure in the U.S. [4].
According to Schlagbauer, the Volkswagen assembly plants in Tennessee and South Carolina can mitigate tariff-related risks and serve the U.S. market without the massive investment and risk associated with building a completely new Audi factory [4]. This approach is seen as a more feasible and cost-effective solution compared to the estimated $4.6 billion cost of a new plant [1].
Schlagbauer and other representatives at the meeting are currently evaluating various scenarios, including the possibility of a new plant, but the integration with VW’s established U.S. facilities is considered the most viable option [1]. The new plant option is seen as the most expensive among the possible strategies [1][4].
This stance contrasts with broader industry speculation about a U.S. plant to reduce exposure to tariffs and comply with local content rules for electric vehicles [3][4]. However, Schlagbauer's position highlights an emphasis on optimized use of current infrastructure rather than immediate expansion [1][3][4].
The meeting, which was the second regular works meeting of the year at Audi, was attended by key personnel from Audi's management and the works council [2]. Although the meeting did not result in any immediate decisions regarding the expansion or optimization of German production sites or the construction of a new U.S. plant, the discussion marks a continuing effort by Audi to optimize its production processes and ensure the efficient use of resources [1].
[1] Autocar Professional, Audi U.S. plant not on the cards, says works council chief, 2nd March 2023, [2] Audi AG, Audi Newsroom, Audi-Newsroom, 2nd March 2023,
- Schlagbauer suggested utilizing the existing Volkswagen Group infrastructure in the U.S., such as the assembly plants in Tennessee and South Carolina, to serve the U.S. market, as it would help mitigate tariff-related risks and save significant costs compared to building a new Audi factory.
- In a contrast to industry speculation, Schlagbauer emphasized the need for optimizing current infrastructure, proposing it as a more feasible solution rather than immediate expansion or the construction of a new U.S. plant for electric vehicles.
- The representatives at the meeting are exploring various strategies, including a new plant option, but they see the integration with Volkswagen’s established U.S. facilities as the most viable and cost-effective solution within the automotive industry and finance landscape.
