Audi is the latest automaker looking to shift its strategy after the historic Inflation Reduction Act passed in August. The Inflation Reduction Act provides tax credits for buying electric vehicles in the US. If you buy a new EV, you may be eligible for a $7,500 tax credit or $4,000 for used ones.
However, for a model to be eligible, it must meet strict battery sourcing and manufacturing requirements. Most battery components must be sourced from North America, while final assembly must also occur in North America or with US free trade partners. In an interview with Automotive News, Audi’s chief technical officer, Oliver Hoffman, said the IRA bill will have a “huge impact” on its North American strategy as the automaker considers building its first US EV plant.