Monday, July 22, 2024
NewsAudi Could Install its Next Factory in Ontario

Audi Could Install its Next Factory in Ontario

Audi is looking to install a new manufacturing plant in North America, possibly in Ontario.

  • This is because VW Group has decided to build a new battery plant in the province.

  • EVs built in Canada are also eligible to U.S. federal tax credits under the inflation reduction act.

  • Audi hasn’t confirmed anything yet, which means the United States could still be in the running.

With the announcement of a new battery factory in Ontario for the VW Group, rumours are that Audi could install its next assembly plant in the province.

The German automaker is currently looking to build a new assembly plant in North America in order to continue benefitting from federal tax credits in the United States under the new rules brought by the Inflation Reduction Act.

While Volkswagen already has a strong manufacturing presence in the South of the United States due to its factory in Chattanooga, Tennessee, Audi might want to set up its new plant up North to be closer to the new battery facility.

This is because lithium batteries such as those used in EVs require special precautions to minimize fire risks during transport, which makes getting them from Ontario all the way down to Tennessee quite expensive.

Another reason why Audi could choose Canada is due to the availability of skilled labour, an important factor to consider when opening a new automotive factory.

With that said, Audi still hasn’t confirmed anything about this new plant, which means the location might not have been decided yet.

Due to the proximity of Southern Ontario to the United States, it is not impossible that Audi could choose Michigan as the site of its future manufacturing plant since the State is also home to many automotive suppliers and within a reasonable distance of the new VW battery plant in St. Thomas.

More details should be revealed in the coming months since the automaker’s electric vehicles are already ineligible for tax credits in the U.S, making a North American plant a priority.

Source: Carscoops

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