Volkswagen Group Signals “Large-Scale” Expansion of U.S. Manufacturing

The Volkswagen Group represents much more than just VW. It includes Audi, Bentley, Porsche, Lamborghini, Ducati, and other marques not sold in the U.S., such as Skoda. Together, the Group sold over one million vehicles in North America last year and around 9 million globally—second only to Toyota. Unlike Toyota or Honda, however, Volkswagen hasn’t historically relied on U.S. manufacturing for its American sales. That may soon change. Here's why fans of Volkswagen, Audi, or Porsche should pay attention:

• Volkswagen Group CEO Oliver Blume pledges significant U.S. factory investment
• What it means for American car shoppers
• Why North America is vital to Volkswagen's strategy

Let’s dive deeper.

There’s an unspoken motive behind Blume’s promise of “large-scale investment” in U.S. manufacturing: protection against potential trade conflicts with the Trump administration. Reciprocal tariffs could disrupt exports—models like the ID.4 and Atlas, made in Tennessee and shipped abroad—and risk American jobs at German automakers. This includes BMW, currently the U.S.’s largest vehicle exporter. Thus, Blume’s “investment” carries both promise and an implicit warning to 20,000 U.S.-based workers.

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Volkswagen

• Founded: May 28, 1937
• Origin: German Labour Front
• Headquarters: Wolfsburg, Germany
• Parent: Volkswagen Group
• CEO: Thomas Related

VW Most Vulnerable to Tariffs—Volvo May Shift Production to U.S.

The mere possibility of tariffs has made European car brands anxious, despite their growing U.S. production presence.

What This Means

Blume, who also heads the Porsche brand, noted changing consumer attitudes. Buyers are increasingly indifferent to whether an Audi comes from Mexico or a Volkswagen from Tennessee.

According to the German newspaper Süddeutsche Zeitung, the Group is looking to capitalize on its investment in Scout, which will start vehicle production in South Carolina next year. Even prior to tariff threats, there were rumors that Volkswagen’s revival of the Scout brand would lead to a pickup and a tough Audi rivaling Land Rover. Now, the company may also use that facility to build more conventional Audi crossovers.

What’s Next for Porsche?

Right now, the situation for Porsche is less than ideal. The brand once beloved by Chinese luxury buyers is losing ground to cheaper, tech-savvier local EVs. The Volkswagen Group is playing catch-up in this space.

It’s plausible that Porsche could shift SUV manufacturing to the U.S. and partner more closely with Audi. Both brands utilize the versatile PPE platform, which supports both electric and gasoline powertrains. For agility, Porsche may need to do the same with its EV lineup.

Battery breakthroughs may seem dull—until they lead to cheaper, longer-lasting Volkswagen EVs.

According to Handelsblatt, BMW is incurring €10 million (around $11.3 million) in daily losses due to 25% U.S. tariffs. The report says Volkswagen Group, Mercedes-Benz, and BMW are jointly lobbying for tariff relief, citing their U.S. factory investments. Blume also referenced Volkswagen’s $2 billion investment in Scout and $5.8 billion in Rivian.

Still, whether those investments offer protection is uncertain.

Hyundai committed $21 billion to U.S. projects before the last round of tariffs, but South Korean exports still suffered. Ultimately, automakers prioritize reliability—regardless of expense. But with the threat of new tariffs looming, the road ahead for European carmakers is rocky—and American fans of Volkswagen, Audi, and Porsche may end up footing the bill.