Inflation Reduction Act Spurring EV-Production Activity

Various news outlets are reporting Audi’s interest in building an electric-vehicle (EV) manufacturing plant in the United States, due to favorable tax incentives included in the Inflation Reduction Act (IRA). Audi currently does not have a U.S. plant and so is not eligible for any IRA tax incentives and subsidies available for vehicles sourced and made in North America, including a $7500 consumer tax credit to buyers of North American-made EVs. The news comes on the heels of Volkswagen’s recent announcement to build a U.S. facility for manufacturing its Scout brand of EV pickups and SUVs.

"The IRA has made building a U.S. plant for electric cars very attractive," says Audi CEO Markus Duesmann, in an interview with German newspaper Frankfurter Allgemeine Sonntagszeitung.

Audi previously has announced plans to produce EVs at all of its global locations by 2030, and to stop developing new combustion-engine vehicles after 2026.

Technologies: Management

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