Audi is intensifying its North American strategy by finally establishing local vehicle production, a move its competitors BMW and Mercedes-Benz have long pursued. The luxury automaker, historically reliant on imports from Europe and Mexico, has been hampered by tariffs and slower market penetration. Now, Audi plans to address this with a new, rugged SUV designed to compete directly with the Land Rover Defender, manufactured within the United States.
Leveraging Scout’s US Plant
Rather than constructing a dedicated factory, Audi will utilize the Blythewood, South Carolina, plant currently under development by Scout Motors, a VW-owned brand. Scout, resurrected in 2022 after decades of dormancy, aims to launch two vehicles – the Scout Traveler SUV and Scout Terra truck – by late 2027. This collaboration allows Audi to bypass significant capital investment and accelerate its entry into the competitive American SUV market.
Powertrain and Chassis: A Departure for Audi
The upcoming Audi SUV will be a range-extender hybrid, tailored specifically for US consumer preferences. Notably, it will feature a ladder-frame chassis – a first for the brand – and robust four-wheel-drive systems with locking differentials. This shift signals Audi’s commitment to building a truly capable off-road vehicle, diverging from its traditionally unibody-focused approach.
Range-Extender Demand Drives Production
Market data indicates strong consumer preference for range-extender powertrains. Over 80% of Scout reservations are for the hybrid version, which combines a smaller battery with a combustion engine for extended range. While fully electric Scouts offer 350 miles of range, the range-extenders deliver approximately 500 miles, with 150 miles provided by the battery alone. This trend underscores the practicality of hybrid options for American drivers who prioritize both efficiency and long-distance capability.
Design Hints: A Departure From Audi’s Norms
Although official images remain undisclosed, Audi has hinted at a more aggressive off-road design language. The Q6 e-tron Offroad Concept debuted earlier in 2025, showcasing portal axles and increased ride height. However, the production model, expected in 2028, will likely be larger and boxier, departing from Audi’s sleek aesthetic. Renderings suggest a more utilitarian look, mirroring the rugged appeal of the Defender.
Why This Matters: A Strategic Shift
Audi’s decision to build locally and embrace a more rugged design reflects a broader industry trend. Automakers are recognizing the growing demand for capable, off-road-focused SUVs in North America. By leveraging Scout’s production infrastructure, Audi avoids costly delays and capital expenditures. The hybrid powertrain caters to consumer preferences for extended range, while the ladder-frame chassis signals a commitment to durability and off-road performance.
This move positions Audi to compete directly with Land Rover and other established off-road brands, strengthening its presence in the lucrative American SUV market. The strategic partnership with Scout allows Audi to adapt quickly to evolving consumer demands while maintaining its luxury brand identity
