Audi considers opening first u s plant to get ev tax credits
Audi is thinking about a new production strategy to benefit from the recent EV-related tax rebates in the United States.
The U.S. government decided that all EVs manufactured in the United States are eligible for a significant tax cut. This decision constitutes a big incentive for global carmakers to relocate their manufacturing operations to the US, several of them took the first steps to do so, and now Audi is considering it too.
The German company currently has one factory on the continent, making the Q5 crossover in Mexico, which is good enough for a gas-powered car. But when it comes to making EVs, Audi is starting to feel that its factory is on the wrong side of the border.
Audi considers opening first u s plant to get ev tax credits
Audi’s head of technical development, Oliver Hoffman spoke about the impact of the new law in the US; “it will have a huge impact on our strategy here.” he added “To be honest, we are looking right and left: What can be the opportunity for us to get together with a strong [Volkswagen Group] in the background,” he said. “And now we are on the way, especially as the rules changed and as you know there is big spending of the government for EVs, with special circumstances, and we are looking forward to how we can meet these requirements.”
Hoffman also spoke about the level of collaboration that the company has with all its sibling companies that are grouped under the Volkswagen umbrella. The development of EV technology has been faster, easier, and cheaper, and Audi benefited greatly from that. The company is currently working on a new premium platform that it will share with Porsche and Bentley while still using VW’s MEB platform on its current EVs, like the Q4 e-Tron for example.
Speaking of VW, unlike Audi, the company is already an established car manufacturer in the US, making the Atlas and the new all-electric ID.4 in its Chattanooga, Tennessee factory; Making it eligible for the Inflation Reduction Act.
Volkswagen is still seeking to settle itself more comfortably in the US market, mainly by looking for local raw material suppliers. These intentions were revealed in the recent agreement with the Canadian government, where the northern neighbors agreed to supply primary minerals used in EV battery production. This will certainly facilitate Audi’s entrance into the US, but that’s still not a certain thing. Hoffman said that a decision will probably be taken in early 2023.
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