Audi’s Mercedes G-Wagen rival one step closer

Audi is betting big on the US, last week announcing it is investing US$4 billion (AU$5.7 billion) into a new plant in Georgia, a move which could allow it to side-step the nation’s controversial vehicle import tariffs.

Due to open in the early 2030s and produce approximately 200,000 vehicles at its peak, the Georgia factory is slated to become one of Audi’s most productive facilities, with the Q7, Q8 and Q9 to roll off the production line for the North American market.

This would place Audi closer in line with Mercedes-Benz and BMW, both of which already produce vehicles in the US, such as the GLE- and GLS-Class, plus the X3, X5, X6, X7, and XM.

However, Reuters has reportedly been told Audi will produce an additional 25,000 vehicles annually in the US at a plant in South Carolina, set to be the production base of fellow Volkswagen Group-owned brand, Scout Motors.

Scout’s factory is currently under construction and has been the focus of a US$2 billion (AU$2.8 billion) investment, with a pair of body-on-frame vehicles, the Terra pickup and Traveler SUV, set to enter production from 2028.

According to Reuters, the Audis built in the Scout plant will be primarily made for North America but may also be exported, giving weight to earlier reports of Audi launching its own off-road ready, body-on-frame SUV.

Audi CEO Gernot Döllner has spoken on the record multiple times in the recent past about a rugged SUV being in Audi’s plans, after Automobilwoche reported on the potential off-roader late last year.

At the time, the executive said Audi “haven’t given up on that dream” of launching a rival to the G-Wagen and Defender.

Rather than be based on an existing Audi platform, the publication reported the new large SUV would be underpinned by architecture from Scout, the new US-focused Volkswagen subsidiary.

The report also claimed the Audi off-road SUV would be offered with a range-extender powertrain, meaning an engine would only serve to charge the on-board battery, which powers the electric motors driving the wheels – something which has already been locked in for Scout’s vehicles.

In May, Döllner added weight to the rumours, telling Motor1 Audi was “evaluating” whether an off-road oriented SUV could fit into its model lineup, representing the second time he’s hinted at such a product this year.

Earlier in the year, the executive told US publication Car and Driver: “The perfect thing is that I can imagine an Audi from the A2, [a] very efficient city car, to a super sports car, from a small SUV to a rugged SUV in the US, that would also fit the Audi brand.

Audi isn’t the only brand looking to enter the luxury SUV segment, with Genesis unveiling the X Gran Equator concept in April last year, though BMW recently reportedly called off its plans to build a Mercedes-Benz G-Wagen rival.