Audi to launch its first US EV plant?

Audi is the latest automobile giant to consider shifting its strategy after the historic Inflation Reduction Act passed in August this year. The Inflation Reduction Act provides tax credits for buying electric vehicles in the US meaning that if consumers buy a new EV, they may be eligible for a $7,500 tax credit or $4,000 for used ones. However, for a model to be eligible under the Inflation Reduction Act, it must meet strict battery sourcing and manufacturing requirements. The act states that most battery components must be sourced from North America, while final assembly must also occur in North America or with US free trade partners. In an interview with Automotive News, Audi’s chief technical officer, Oliver Hoffman, revealed the IRA bill will have a “huge impact” on its North American strategy as the German manufacturing giant considers building its first US EV plant. In an interview with Automotive News, Hoffman outlined his belief that Audi EVs may eventually qualify for the federal tax credit. Hoffman, speaking at Audi’s design center in Malibu, California, baldly stated the automaker is looking for opportunities to build and develop thier EV brand, including potentially expanding its manufacturing capabilities in the US, adding: "And now we are on the way, significantly as the rules changed, and as you know, there is big spending of the government for EVs, with special circumstances, and we are looking forward to how we can meet these requirements. For us, we have big opportunities within the group to make this happen, with our platform spreading strategies, this is a big opportunity for us. And we will look where we want to produce our cars in the future." Audi’s CTO says he and other Audi higher-ups are “really impressed” at how electric vehicles are growing in the US, adding a decision on whether to build an EV plant in the US could come in 2023.