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Automotive Industry
German premium carmakers exposed to US import tariffs are weighing long-term strategies from raising prices and lowering output to shifting production to deal with the added cost.
Audi said it is considering “the extent to which we will have to pass on at least some of the tariffs to our customers in the form of price increases” and seeking a “sweet spot” between price increases and adjusting production.
The brand has no factories in the US and builds the Q5, its US bestseller, at its plant in San Jose Chiapa, Mexico — a country targeted by Trump in his tariff push.
Audi said on 18 March that it will announce this year where in the region it will produce its main models for the US market.
Also on 18 March, Mercedes-Benz’ production chief Joerg Burzer said the automaker’s decision on whether to carry on exporting its GLB crossover from its joint venture plant with Nissan in Mexico to the US depended partly on whether its competitors responded to tariffs by localizing production in the US.
Burzer said a potentially promising option for Mercedes was to import vehicles from South Africa, which has duty-free access to the US.