Audi’s plan to build a U.S. factory has stalled, according to Handelsblatt. The Volkswagen Group has been weighing an expansion in Chattanooga, Tennessee, where it already runs its only American plant. Local officials have spent months urging Audi to choose the city. Charles Wood, head of the Chamber of Commerce, says the community is used to the slower pace of German decision-making. He believes that once Audi commits, the company will move quickly.

The timing remains uncertain. Without U.S. production, Audi is fully exposed to import tariffs imposed under President Donald Trump. Those tariffs also strain the company’s budget and limit its ability to fund a new plant. Volkswagen CEO Oliver Blume told Handelsblatt that the tariff burden makes a major investment impossible for now. Talks with the U.S. government have not eased the pressure. The delay comes as more challenges await Audi in the American market, underscoring the importance of the U.S. to the group’s strategy.