Given that the U.S. government is now offering increased tax rebates for EVs manufactured in America, Audi is evaluating whether or not to open a production facility in the United States.

When Audi elects to move to electric propulsion, it would be advantageous for the company to begin production north of the Mexico-US border. Currently, Audi's only North American plant is in San Jose Chiapa, where the Q5 crossover is built.

Speaking to Automotive News, Oliver Hoffman, Audi's head of technical development, said that America's new rules "will have a huge impact on our strategy here."

"To be honest, we are looking right and left: What can be the opportunity for us to get together with a strong [Volkswagen Group] in the background," he said. "And now we are on the way, especially as the rules changed and as you know there is big spending of the government for EVs, with special circumstances, and we are looking forward to how we can meet these requirements."

While Audi does not have a U.S. plant, Volkswagen operates one in Chattanooga, Tennessee.It began building internal combustion vehicles like the Atlas, but now it's developing the all-electric ID.4. It is also the only Volkswagen Group model that may currently take advantage of tax credits provided by the Inflation Reduction Act.

Hoffman suggested that Audi could make a final decision about expanding EV production to the U.S. in early 2023.