VW CEO floats U.S. Audi production to skirt tariffs, FAZ reports

Volkswagen AG may build some Audi cars in the U.S. in a bid to avert President Donald Trump’s tariffs, its chief executive told Frankfurter Allgemeine Zeitung in an interview published Friday.

“We have a forward strategy with exciting projects, tailor-made and attractive for the U.S. market,” VW’s Oliver Blume told the German daily. “Constructive talks are currently underway with the U.S. government.” 

He added that for the group’s Audi brand, “U.S. production would be a development step within the framework of our strategy.”

The statements come after Trump earlier this week said he’s exploring possible temporary exemptions to tariffs on imported vehicles and auto parts to give car companies more time to set up or beef up U.S. manufacturing.

While a previously proposed 25% tariff aims to bring more manufacturing to the U.S., it would in some instances require a major overhaul of global supply chains, which could be expensive and push up vehicle prices.

VW has had a large plant in Chattanooga, Tennessee, since 2011, and is building a new factory near Columbia, South Carolina, to revive the traditional Scout nameplate, now as EVs. 

In addition, many of the VW group’s vehicles are imported from Europe or Mexico, and Audi currently has no production base in the US. “We will do our utmost to act as a reliable investor and partner in the U.S.,” Blume said.

He ruled out production of iconic Porsche sports cars in the U.S., though, pointing to a low production volume of currently about 70,000 cars per year. “For Porsche, the United States is the most successful single market, and ‘Made in Germany’ plays an important role for U.S. customers,” Blume said. 

This story was originally featured on Fortune.com