Audi is preparing a luxury 4×4 to challenge the Mercedes G Class and Land Rover Defender as a halo model showcasing radical new design and technology.

CEO Gernot Döllner told Autocar fans should stay tuned and not give up on that dream when asked if the project remains alive.

The idea first emerged in 2023 when then design boss Marc Lichte suggested such a model would build on Audi’s Quattro off-road legacy and tap into a highly profitable market segment where only two premium players currently compete. There’s space for a third one, he argued.

Lichte left Audi shortly after but was replaced by ex JLR designer Massimo Frascella, whose role shaping the Defender in his previous job reinforced speculation that Audi was gearing up for similar vehicle.

The 2023 Activesphere concept, a high-riding wagon-like EV based on Premium Platform Electric architecture used by the A6 e-tron and Q6 e-tron, previewed the direction.

Launching a relatively low-volume model seems at odds with Döllner’s objective to simplify the Audi lineup, but he insists flagship cars serving as technology showcases remain important.

It works perfectly to have more focused lineup in the core plus niche models building the brand and transferring new ideas from niche segments into core products, he explained.

The rugged SUV could potentially share the body-on-frame platform Scout Motors is developing for its Traveler SUV and Terra pickup, entering production in 2027 at the new South Carolina factory.

Scout vehicles will offer all-electric or range-extended powertrains, providing suitable architecture for Audi’s luxury 4×4.

US import tariffs have prompted Audi to consider local production there, and this 4×4 would be viable candidate given the popularity of such vehicles in America.

At the group level, we are discussing whether we should have a factory for Audi in the US, Döllner said, though that depends on stable tariff situation and regulatory conditions.

It could be logical to build Audi models in existing VW Group facilities, including the Scout plant, but the big question is whether Audi wants a specific factory or not. That decision remains absolutely open and dependent on alignment with the US government.

The timing could prove ideal. Rugged luxury SUVs represent one of the automotive industry’s most profitable segments, with G Class and Defender commanding premium prices and strong demand despite their relatively old-school construction and modest technology compared to typical Audis.

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