The German car manufacturer Audi, part of the VW Group, is apparently planning a new SUV model exclusively for the US market. The vehicle is also to be built locally, with the VW brand Scout assisting with technology and production.
Rumors about Audi developing its own model for the U.S. market have been circulating for a long time. When US President Joe Biden strongly promoted electric mobility, it almost resulted in a large electric SUV for the US market.
The Q8 e-tron was supposed to take on this role in Mexico after production ended in Brussels. However, the tariff policy of Biden’s successor, Donald Trump, and the end of the EV tax credit have shaken these plans.
Given the tariffs, Audi’s big problem is that it lacks its own U.S. plant and is solely dependent on imports from Europe and Mexico for the North American market.
New plan
According to the German specialized publication Automobilwoche, citing unspecified company sources, there is now a new plan: a dedicated SUV model for the US market, to be produced there. However, it will not be a purely battery-electric model, but an electric vehicle with a range extender (REEV or EREV).
In terms of technology and production, a collaboration with Scout is planned, with the Audi model set to roll off the production line alongside the two Scout models in Columbia, South Carolina, where Scout has been building its own factory since February 2024.
U-turn
If the information is accurate, this would represent a U-turn in Audi’s U.S. plans. Back in the summer, the Ingolstadt-based company was still toying with the idea of building a ‘twin plant’ to the VW factory in Chattanooga, Tennessee.
The plant there is designed for expansion, which has not yet been implemented. The advantages are apparent: Audi could draw on existing VW structures for infrastructure and logistics, as several suppliers have settled around the factory.
This would reduce construction time and costs, especially compared to a stand-alone factory in another state, which was also probably considered.
However, the VW Group needs to save money, and the expenditure for a new factory does not fit into the picture, synergies or not. This is also expected to affect existing and planned electric cars for the U.S. market, especially for the new daughter brand Scout.
Scout
Two battery-electric models were initially announced for the revived brand: an SUV and a pickup truck, with range-extender variants to follow later. In October, it was reported that only the range-extender versions of the Scout models would be available initially. Scout President Scott Keogh later stated that 80% of pre-orders were for the range extender, not the battery version.
The Scout factory is designed to produce up to 200,000 vehicles per year at full capacity. It was questionable whether a virtually new brand could utilise even a fraction of this capacity.
Manufacturing a model from another brand within the group would therefore make perfect business sense, especially since a new Audi plant would also have faced the problem of being entirely dependent on demand for a single model.
There is another advantage for Audi: technology sharing. Scout is developing its own robust ‘body-on-frame’ platform to offer vehicles that appeal to U.S. customers.
This would allow Audi to obtain a model with suitable U.S. technology without incurring high development costs, instead of having to adapt other group platforms in a compromise. In China, too, Audi is now relying on localised platforms to offer its own regional models (no four-rings logo, but Audi spelled in capitals), such as the AUDI E5 Sportback.
