Audi May Take Drastic Action To Dodge Tariffs
German Media Fears Massive Costs
The ongoing uncertainty around how bad tariffs may get ahead of the July 9 deadline for agreement, for European automakers in particular, is no reason to stay idle. Regardless of what the final impact will be, tariffs aren't going anywhere anytime soon, and according to German magazine Der Spiegel, Audi is considering building a production facility somewhere in the southern U.S. to minimize the effects. But it's not an easy call to make. As noted by Automotive News, building a plant here would be 'the more expensive option out of a number of scenarios being considered, with company sources estimating costs of up to €4 billion (approximately $4.6 billion). So will it happen anyway? An Audi spokesperson has confirmed that the automaker intends to build its U.S. presence, but that's typical non-committal public relations speak.
0:04
/
0:09
Walmart is selling a 'heavy duty' $89 step ladder for $48, and shoppers say it's 'sturdy and secure'
Watch More
Audi Will Make A Decision This Year, Probably
Source:'We are currently examining various scenarios for this. We are confident that we will make a decision this year in consultation with the [Volkswagen] Group on how this will look in concrete terms,' the spokesperson wrote in an email. Audi has been rumored to be examining the viability of a U.S. plant for several years, but up until now, the automaker has been performing relatively well in America, although Audi's 2024 sales showed a sharp year-on-year decline of 14%, indicating that changes must be made somewhere, regardless of current or future tariff measures. To help effect that change, Audi is working on a fresh new design language, and U.S. manufacturing (or at least assembly) may help future arrivals find broader appeal with competitive pricing. BMW has been producing cars in South Carolina since 1994, and in those 30-odd years, it's grown to become the largest automotive exporter by value in the U.S. Perhaps Audi would benefit from a similar approach.
Where Audi Could Put Down Roots
As part of the Volkswagen Group, Audi wouldn't necessarily have to start from scratch. The VW brand operates a plant in Chattanooga, Tennessee, where the ID.4 EV and the Atlas and Atlas Cross Sport SUVs are produced, and its Scout Motors brand is building one in Columbia, South Carolina. But that's it – Porsche won't be moving production to America because its sales volumes would not justify such extensive investment, and its customer base is not unused to absorbing exorbitant price increases.
As we noted earlier, Audi hasn't made a decision yet because it's exploring other options. One of those reportedly is to negotiate a tariff import deal with the U.S. government, which compatriot automakers BMW, Mercedes-Benz, and VW are said to be collaboratively pursuing alongside the Ingolstadt-based manufacturer. BMW and Mercedes are the only exporters in this group, but all have made significant investments in the U.S.
About the Author
Sebastian Cenizo View Profile
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
25 minutes ago
- The Sun
I'm a Vinted expert, my four easy tips will instantly boost your sales and why pricing lower will mean you earn more
SUMMER can be an expensive time of year whether you have holidays to pay for or are trying to keep the kids entertained while they're off school. Vinted can be a great way to make extra cash but with thousands of listings on the reselling app it can be difficult to get yourself noticed. 1 However, Faye Oakenfull, marketing director at Centra, has revealed how to make your listings stand out. She says focusing on quality listings and smart pricing can transform casual decluttering into a profitable side business. Quality photography matters "Quality photos are the foundation of successful listings," Oakenfull explains. "Natural light works best for capturing true colours and details that buyers want to see." Use a plain background to avoid distractions, and photograph items from multiple angles – front, back, close-ups of details, and any flaws. This not only gives buyers a better view of the product but also helps build trust. When it comes to how you present your items, the expert says the choice between trying them on or laying them flat depends on both the garment and your personal comfort. Modelling the item can help potential buyers visualise fit and drape, especially with structured pieces like coats, dresses, or trousers, but laying items flat – or neatly hanging them – can still be highly effective when done with care and good lighting. A strong middle ground is hanging items on a hanger. This allows for clean, consistent photos without the need to model, while still showing shape and length clearly. "Consistency in your photo style across listings can also help create a cohesive and trustworthy seller profile,' she adds. 'If you can, avoid using flash, and try to take your photos during daylight hours to give your items a natural, true-to-life appearance.' Strategic pricing boosts visibility Vinted's statistics show that competitive pricing strategies are flourishing, as there has been an increase in algorithmic visibility for well-priced items. This may be due to recent high competition and increased platform usage encouraging sellers to ask for reasonable prices. "Before listing an item, search for similar products that have sold recently," Faye advises. "Position yourself just below comparable listings to attract more views." Pricing just a little lower than similar active listings can improve your chances of being featured higher in search results. Consider the condition of your item too – new with tags items can command higher prices, but gently used ones should be priced accordingly. Keep track of how long items stay listed; if something hasn't sold in a few weeks, adjusting your price even slightly could refresh visibility and drive interest. Detailed descriptions drive sales Providing detailed descriptions is an effective way of increasing your chances of conversion. The increase of keyword usage and the inclusion of measurements contribute to this improvement, alongside the reduction in customer questions regarding the listing. "Be thorough about size, condition, and materials in your descriptions. Include measurements rather than just size labels since sizing varies between brands," Faye suggests. Well-crafted descriptions not only help with searchability but also reduce the number of queries from potential buyers, saving you time. Mention the fit (tight, loose, oversized), washing instructions, or any brand-specific quirks. Use clear, searchable terms like 'Zara midi dress' or 'Nike Air Force 1 UK 7' rather than vague titles. The more transparent and accurate your listing, the more confident shoppers feel clicking 'Buy.' You can also add other relevant details to your listings. For instance, if you're selling a fair number of items, you could mention that you're having a clear-out – this can encourage people to browse your wardrobe. Bundle discounts increase total value UK bundle discount sales continue to be on the rise – and it's no surprise. Everyone enjoys a good deal, especially at a time when the cost of living and inflation are steadily increasing. UNDERSTANDING TAX IMPLICATIONS According to HMRC guidance, there is no new tax rule for people selling unwanted items online. But you may need to register for Self Assessment and pay tax if you buy goods for resale with the intention of selling them for profit and generate total income exceeding £1,000 before expenses in any tax year. In other words, anyone buying items specifically to resell them may be subject to tax, while personal decluttering remains tax-free. How you acquire your items matters, because personal possessions and purchased inventory are taxed at different rates. "If you're buying stock to resell, track all your expenses including packaging, postage, and the original cost of items," Oakenfull advises. "These can be deducted from your profits when calculating any potential tax liability." The key is knowing the difference between casual selling and running a small business, and planning accordingly. Shoppers are becoming more conscious of value and even more likely to take advantage of savings where they can. "Offering percentage discounts on multiple purchases is a satisfying way to increase your overall sales value while saving on shipping costs," she notes. Bundling encourages customers to buy more at once, especially when they're already browsing your wardrobe. Set up automated discounts – such as 10% off two or more items – and mention this in your bio or item descriptions to catch attention. It not only increases average order value, but also reduces the time and materials spent on packaging and postage.
Reuters
27 minutes ago
- Reuters
Europeans seek 'digital sovereignty' as US tech firms embrace Trump
BERLIN, June 21 (Reuters) - At a market stall in Berlin run by charity Topio, volunteers help people who want to purge their phones of the influence of U.S. tech firms. Since Donald Trump's inauguration, the queue for their services has grown. Interest in European-based digital services has jumped in recent months, data from digital market intelligence company Similarweb shows. More people are looking for e-mail, messaging and even search providers outside the United States. The first months of Trump's second presidency have shaken some Europeans' confidence in their long-time ally, after he signalled his country would step back from its role in Europe's security and then launched a trade war. "It's about the concentration of power in U.S. firms," said Topio's founder Michael Wirths, as his colleague installed on a customer's phone a version of the Android operating system without hooks into the Google ecosystem. Wirths said the type of people coming to the stall had changed: "Before, it was people who knew a lot about data privacy. Now it's people who are politically aware and feel exposed." Tesla (TSLA.O), opens new tab chief Elon Musk, who also owns social media company X, was a leading adviser to the U.S. president before the two fell out, while the bosses of Amazon (AMZN.O), opens new tab, Meta (META.O), opens new tab and Google-owner Alphabet (GOOGL.O), opens new tab took prominent spots at Trump's inauguration in January. Days before Trump took office, outgoing president Joe Biden had warned of an oligarchic "tech industrial complex" threatening democracy. Berlin-based search engine Ecosia says it has benefited from some customers' desire to avoid U.S. counterparts like Microsoft's (MSFT.O), opens new tab Bing or Google, which dominates web searches and is also the world's biggest email provider. "The worse it gets, the better it is for us," founder Christian Kroll said of Ecosia, whose sales pitch is that it spends its profits on environmental projects. Similarweb data shows the number of queries directed to Ecosia, opens new tab from the European Union has risen 27% year-on-year and the company says it has 1% of the German search engine market. But its 122 million visits from the 27 EU countries in February were dwarfed by 10.3 billion visits to Google, whose parent Alphabet made revenues of about $100 billion from Europe, the Middle East and Africa in 2024 - nearly a third of its $350 billion global turnover. Non-profit Ecosia earned 3.2 million euros ($3.65 million) in April, of which 770,000 euros was spent on planting 1.1 million trees. Google declined to comment for this story. Reuters could not determine whether major U.S. tech companies have lost any market share to local rivals in Europe. The search for alternative providers accompanies a debate in Europe about "digital sovereignty" - the idea that reliance on companies from an increasingly isolationist United States is a threat to Europe's economy and security. "Ordinary people, the kind of people who would never have thought it was important they were using an American service are saying, 'hang on!'," said UK-based internet regulation expert Maria Farrell. "My hairdresser was asking me what she should switch to." Use in Europe of Swiss-based ProtonMail rose 11.7% year-on-year to March compared to a year ago, according to Similarweb, while use of Alphabet's Gmail, which has some 70% of the global email market, slipped 1.9%. ProtonMail, which offers both free and paid-for services, said it had seen an increase in users from Europe since Trump's re-election, though it declined to give a number. "My household is definitely disengaging," said British software engineer Ken Tindell, citing weak U.S. data privacy protections as one factor. Trump's vice president JD Vance shocked European leaders in February by accusing them - at a conference usually known for displays of transatlantic unity - of censoring free speech and failing to control immigration. In May, Secretary of State Marco Rubio threatened visa bans for people who "censor" speech by Americans, including on social media, and suggested the policy could target foreign officials regulating U.S. tech companies. U.S. social media companies like Facebook and Instagram parent Meta have said the European Union's Digital Services Act amounts to censorship of their platforms. EU officials say the Act will make the online environment safer by compelling tech giants to tackle illegal content, including hate speech and child sexual abuse material. Greg Nojeim, director of the Security and Surveillance Project at the Center for Democracy & Technology, said Europeans' concerns about the U.S. government accessing their data, whether stored on devices or in the cloud, were justified. Not only does U.S. law permit the government to search devices of anyone entering the country, it can compel disclosure of data that Europeans outside the U.S. store or transmit through U.S. communications service providers, Nojeim said. Germany's new government is itself making efforts to reduce exposure to U.S. tech, committing in its coalition agreement to make more use of open-source data formats and locally-based cloud infrastructure. Regional governments have gone further - in conservative-run Schleswig-Holstein, on the Danish border, all IT used by the public administration must run on open-source software. Berlin has also paid for Ukraine to access a satellite-internet network operated by France's Eutelsat ( opens new tab instead of Musk's Starlink. But with modern life driven by technology, "completely divorcing U.S. tech in a very fundamental way is, I would say, possibly not possible," said Bill Budington of U.S. digital rights nonprofit the Electronic Frontier Foundation. Everything from push notifications to the content delivery networks powering many websites and how internet traffic is routed relies largely on U.S. companies and infrastructure, Budington noted. Both Ecosia and French-based search engine Qwant depend in part on search results provided by Google and Microsoft's Bing, while Ecosia runs on cloud platforms, some hosted by the very same tech giants it promises an escape from. Nevertheless, a group on messaging board Reddit called BuyFromEU has 211,000 members. "Just cancelled my Dropbox and will switch to Proton Drive," read one post. Mastodon, a decentralised social media service developed by German programmer Eugen Rochko, enjoyed a rush of new users two years ago when Musk bought Twitter, later renamed X. But it remains a niche service. Signal, a messaging app run by a U.S. nonprofit foundation, has also seen a surge in installations from Europe. Similarweb's data showed a 7% month-on-month increase in Signal usage in March, while use of Meta's WhatsApp was static. Meta declined to comment for this story. Signal did not respond to an e-mailed request for comment. But this kind of conscious self-organising is unlikely on its own to make a dent in Silicon Valley's European dominance, digital rights activist Robin Berjon told Reuters. "The market is too captured," he said. "Regulation is needed as well."
Reuters
32 minutes ago
- Reuters
Head of Russia's Rosneft says OPEC+ could speed up oil output hikes by a year
ST PETERSBURG, Russia, June 21 (Reuters) - OPEC+ group of leading global oil producers could bring forward its output hikes by around a year from the initial plan, Igor Sechin, head of Russia's largest oil producer Rosneft ( opens new tab, said on Saturday. He also said that the decision by the OPEC+ to speed up output increase now looked far-sighted and justified in the light of the confrontation between Israel and Iran. The Organization of the Petroleum Exporting Countries and its allies, led by Russia, shocked oil markets in April by agreeing a bigger-than-expected output hike for May despite weak prices and slowing demand. OPEC+ has since decided to continue with more than planned hikes. "The announced increase in production since May of this year is three times higher than the alliance's initial plan. In addition, the entire increase in OPEC+ production could be shifted a year ahead of plan," he said without elaborating. "The decision taken by OPEC leaders to forcefully increase production looks very far-sighted today and, from the market's point of view, justified, taking into account the interests of consumers in light of the uncertainty regarding the scale of the Iran-Israel conflict," he added. OPEC+ crude output represents about 41% of global oil production. The group's main objective is to regulate the supply of oil to the global market. Having spent years curbing production, eight OPEC+ countries made a modest output increase in April before tripling it for May, June and now July. Besides the 2.2 million bpd cut that the eight members started to unwind in April, OPEC+ has two other layers of cuts that are expected to remain in place until the end of 2026. Oil prices had initially fallen in response to the OPEC+ decision to increase oil production, but the outbreak of an aerial war between Israel and Iran has so far been the main factor behind their return to around $75 per barrel, levels unseen since the start of the year. Speaking at the St. Petersburg International Economic Forum, Sechin, a long-standing ally of Russian President Vladimir Putin, also said there will be no oil glut long-term despite the production rise due to low stockpile levels, though rising usage of electric vehicles in China might hit oil demand. Putin said on Friday he shared OPEC's assessment that demand for oil will remain high. He also said that oil prices had not risen significantly due to the conflict between Iran and Israel, and that there was no need for OPEC+ to intervene in oil markets. Sechin also said Rosneft had already budgeted the oil price of $45 per barrel for this year, the level the European Union eyes as the new price cap on Russian oil imports, which is now set at $60. ($1 = 0.8679 euros)
