Volkswagen Group’s Audi and Scout are looking at the possibility of assembling their vehicles in the U.S. following the introduction of subsidies for domestically produced electric vehicles under the Inflation Reduction Act (IRA).
Both Audi and the reborn U.S.-focused Scout are interested in opening plants in the U.S., according to a pair of reports from Automobilewoche and the Frankfurter Allgemeine Sonntagzeitung.
The former quotes unnamed Scout sources, who said that the decision has been reached “to build the plant ourselves.” That follows earlier reports that the company, while considering its options, also looked at collaborating with a partner like Foxconn or Magna for assembly of its upcoming vehicles.
Read: VW’s Upcoming Scout EVs Could Be Built By Foxconn Or Magna Steyr
Audi’s CEO, Markus Deusmann, meanwhile, was less certain but was quoted by the Frankfurt paper as saying that the company is interested in the idea of an American plant, though a final decision has not yet been reached.
Asked if the automaker was looking at opening its own plant or was willing to work with another VW brand, the CEO said that “both are possible, but the probability that we do it within the group is high.”
He also explicitly stated that American federal tax incentives for EVs assembled in the U.S. introduced under the IRA made the opening of a plant in the country “highly attractive.” Audi currently operates an assembly plant in Mexico, but has no production capacity on U.S. soil, unlike Volkswagen, which has an assembly plant, and battery manufacturing capabilities in Tennessee.
Scout, meanwhile, has not begun production of any vehicles but plans to make an electric SUV and pickup truck aimed at the U.S. market. Based on design sketches released by the company, the vehicles it builds will be rugged and boxy, potentially putting them in competition with the likes of Jeep’s upcoming electric SUVs.
