Organic model vs. Chinese subsidies: the creation of an Audi plant in the U.S. as the first signal of the post-China era in the automobile industry

During the annual Munich Auto Show IAA MOBILITY, which took place from September 9-15, 2025, Volkswagen CEO Oliver Blume stated that the high U.S. tariffs on Audi and Porsche vehicles are unfair, as the German automaker lacks production facilities in the United States.

This occurred shortly after the announcement of plans to build Audi factories in the United States costing more than $10 billion.

Volkswagen's investment in production on U.S. territory creates a method for utilizing a unique and narrow window of opportunity formed by the decline in sales of Chinese and American automakers, allowing Germany to restructure the balance on the global automotive market.

The decision to build Audi factories costing over $10 billion in the United States essentially fixes the strategic pivot of the German auto industry, which has long been losing competitiveness, toward actively reclaiming market share through localization of production.