Audi is considering local production of electric cars in the United States, as the company would like to be eligible for the federal tax credit. This is due to the Inflation Reduction Act of 2022 (IRA), which has made Audi’s EVs ineligible for the $7,500 incentive. This is a serious disadvantage, as it has caused the Audi Q4 e-tron (imported from Germany) to start effectively at over $50,000.
In 2022, Audi sold in the US some 190,000 cars (EV and ICE), but none were produced locally. The only solution to the problem would be the local production of electric Audi vehicles, combined with the local production of batteries in the future. According to Reuters, Audi Chief Executive Markus Duesmann said in an interview with the German newspaper Frankfurter Allgemeine Sonntagszeitung that “The IRA has made building a U.S. plant for electric cars very attractive.”
Industry publication Automobilwoche reported on Friday that Volkswagen planned to build its own plant in the U.S. for the Scout brand, which will make electric pick-ups and SUV trucks. The Volkswagen brand is already a step ahead because it produces some versions of the Volkswagen ID.4 model in Chattanooga, Tennessee (the plan for 2023 is up to 90,000 units). The Volkswagen ID. Buzz might be next in line to be locally produced. Other German premium brands – like BMW and Mercedes-Benz – recently also started local production of electric cars in the US.
Previously Audi announced that there will be no new internal combustion engine models after 2026, which means that the issue will be even bigger in the following years. By 2030, all Audi plants globally will produce electric cars. This move by Audi is a clear indication that they are serious about transitioning to electric vehicles and are willing to invest in local production to make it happen. It will be interesting to see how this move affects their sales and market share in the US in the coming years.
FAQ
Q1: Are electric car batteries recyclable?
A1: Yes, electric car batteries are recyclable.
Q2: Are electric car chargers free?
A2: It depends on the charger and the location. Some electric car chargers are free, while others may require a fee.
Q3: Can electric car batteries be rebuilt?
A3: Yes, electric car batteries can be rebuilt with the right tools and knowledge.
