The Inflation Reduction Act’s federally supported EV tax credit has reportedly led Volkswagen Group and Audi to strongly contemplate expanding their manufacturing base in North America. This is possibly Audi’s first facility in the United States, as per Online EV.
The new regulations “may have a huge effect on our technique right here,” as per Oliver Hoffmann, head of technological development at Audi in North America.
“To be sincere, we’re wanting proper and left: What will be the chance for us to get along with a powerful [Volkswagen Group] within the background,” mentioned Hoffman, talking from Audi’s design center in Malibu, Calif.
“And now we’re on the best way, particularly as the principles modified and as you recognize there’s huge spending of the federal government for EVs, with particular circumstances, and we’re wanting ahead to how we will meet these necessities.”
“For us, now we have huge alternatives throughout the group to make this occur, with our platform spreading methods, it is a huge alternative for us. And we are going to look the place we need to produce our automobiles sooner or later,” Hoffman further explained.
Domestic battery production might help VW, Audi, and Porsche vehicles qualify for tax incentives. Their products must, however, be priced at less than $55,000 for sedans, hatchbacks, and wagons. For SUVs and pickups, it should be $80,000.
Notably, the only group EV eligible for the Inflation Reduction Act’s incentives is the VW ID.4, which is currently manufactured in Chattanooga.
On the other hand, the Q5 crossover is built in Audi’s lone North American assembly facility in San José Chiapa, Mexico.
Meanwhile, Hoffmann commanded that a resolution to expand Audi EV production in North America be made as soon as 2023. “I feel with these new guidelines, it is going to have a huge effect additionally for our technique right here, and to be sincere for localization of automobiles right here,” Hoffmann mentioned.
“Now we have a powerful historical past right here, however for us, it’s a large likelihood to develop right here in [the US], additionally the premium market with our EV fashions.”
In addition, Hoffmann and Audi design head Marc Lichte stated that the brand’s most recent Sphere concepts point to several futuristic features. Expectedly, it will be prominently displayed in upcoming Audi manufacturing cars in the second part of this decade rather than just being EV design workouts.
“I feel, beginning in 2026, you will notice a totally completely different bundle of our automobiles,” Hoffmann mentioned, “the place we see some large steps ahead by way of bundle, by way of path, and a few new applied sciences. And we’re actually wanting ahead to indicate these automobiles.”
“The Grandsphere is one which is a concrete teaser of a severe manufacturing mannequin,” Lichte mentioned. “I am working with my crew along with engineers from [Hoffmann’s] crew proper now on this mission. The method takes about 4 or 4 and a half years, so then you recognize precisely after we go to market.”
