Different reactions to US tariffs from Audi, GM, and the Japanese

Reactions to the automotive import tariffs in the US differ from manufacturer to manufacturer. Audi is considering producing in the US, GM has no plans to move from Mexico to the US, and Mazda is decreasing its US production.

In an interview with the Frankfurter Allgemeine Zeitung (FAZ), Volkswagen Group CEO Oliver Blume said the company is considering relocating part of its production to the US.

“Volkswagen will do everything to stay a trustworthy partner and investor in the US, ” Blume said, “and where Audi is concerned, part of the production in the US would fit in our strategic development plans.”

Blume added: “Constructive discussions were going on with the American government.” However, Blume excluded that Porsche would also move to the US. While the United States is the most important market for Porsche, 70,000 units per year is not enough volume to make the investments.

The US is important for Volkswagen

Despite its plant in Tennessee, VW produces 65% of its VW brand outside the US, and all Audi and Porsche models are actually made elsewhere. The VW Group’s US market increased 6.4% last year and has become even more critical because of the decline in the Chinese market.

“We prepared different scenarios and don’t want to precipitate decisions,” Blume concluded. “We are looking into a global solution for the problem together with the Trump administration.”

GM: No plans to move yet

GM says it has no plans to move production of its Ultium-based EVs from Mexico to the US. Since last year, GM has exclusively produced electric cars at its plant in Ramos Arizpe, Mexico, and has created some 5,000 new jobs in the area, according to economist Raquel Buenrostro, who currently serves as Mexico’s Secretary of Anti-Corruption and Good Government.

Those cars, including the popular Chevy Equinox EV and Honda’s hot-selling Prologue, have been massive hits in their respective segments. The manufacturer seems to know a good thing when it sees one, so it should be no surprise that GM has no plans to scuttle its assembly lines out of the country.

“At this time, GM has no plans to halt or relocate production of any of our EV models made in Mexico,” the director of GM de México’s EV operations, Adrián Enciso, told the Spanish-language newspaper, Milenio. “It’s possible that additional models, such as the new 2026 Chevy Spark, could be built here, too.”

Analyst Market Watch is reporting that the proposed tariffs, if they take effect, could raise GM’s cost to make electric cars in Mexico by up to $4,300 per vehicle.

But while that could significantly dent GM’s profits per unit, it’s worth noting that the EVs might continue to be built in Mexico and sold in Canada and other markets. The new Spark, especially, is targeted toward Central and South America, anyway.

Japanese reactions

The relatively small independent Japanese car manufacturer Mazda produces the CX-50 in its factory in Alabama. Starting 12 May, the plant will no longer make those cars for the Canadian market, where the model represents 15% of its sales. The decision has been made because of the US import tariffs and the Canadian government’s reaction to them.

Nissan has already announced that it will stop selling its Mexican-made QX50 and QX55 SUVs in the US, but it will reconsider its earlier decision to decrease the production of the Rogue model made in Tennessee.

Honda declared last week that the production of the hybrid Civic will move from Japan to the US.

Meanwhile, Donald Trump seems open to compromises in the automotive sector lately. The American Big Three (GM, Ford, and Stellantis) have sounded the alarm at the New York International Show about the impact of tariffs on their production and revenues. The President said he is ready “to see how he can help the manufacturers.”