Audi announces plant in the U.S.

German carmaker Audi announced on Saturday that it will construct a new sport utility vehicle plant in Georgia, a move unveiled during a campaign rally hosted by US President Donald Trump. The Volkswagen subsidiary stated that the facility in Macon, located near the city of Perry, will require an investment of approximately four billion dollars, which some reports specify as 4.2 billion. The plant is designed to manufacture 200,000 vehicles annually, creating roughly 4,500 jobs. This announcement comes less than ten days before the United States midterm elections, scheduled for November 3, where Republicans aim to defend their narrow majorities in both chambers of Congress. President Trump introduced Audi Chairman Gernot Döllner to the crowd at the rally in Perry, a town in the state of Georgia. Döllner took the stage to confirm the details of the project, describing it as a long-term commitment to the American market. He noted that the plant will produce the brand’s largest and highest-quality SUVs. A golden Audi was displayed on stage during the event. Döllner explained that negotiations for this specific facility had been ongoing for three years, although the idea of a dedicated US plant had been on the company’s wishlist for more than a decade. According to Döllner, the agreement to build the plant was signed on Saturday. Currently, Audi imports vehicles for the North American market from Europe and Mexico. The new facility marks the first time the brand will operate its own manufacturing plant in the United States. Construction is planned to begin in 2027, with production starting in the early 2030s. A US government representative told Reuters that the models assembled in Macon will include the Audi Q7, Q8, and Q9. Additionally, Audi intends to build 25,000 vehicles per year in neighboring South Carolina, with these units destined for export markets. The timing of the announcement aligns with President Trump’s broader strategy since the start of his second term in January 2025. The administration has pressured foreign companies to shift production to the United States by threatening high tariffs on imports while offering potential exemptions for firms that invest domestically. Trump credited his tariff policies directly for securing the Audi investment, stating that the deal was a result of his aggressive trade stance. At the rally, he emphasized the scale of the production capacity, telling supporters that 200,000 cars a year was an incredible achievement. Republican officials present at the event welcomed the news. Senator Bernie Moreno stated that the plant would not have happened without business-friendly regulation and the repeal of California fuel consumption rules. Rick Jackson, the Republican candidate for Georgia governor, thanked the president for bringing what he called the biggest economic deal in Georgia history to the state. The rally aimed to boost Republican candidates in the battleground state, including Representative Mike Collins, who is running against Democratic Senator Jon Ossoff. Trump won Georgia in the 2024 election after losing it in 2020, making the state politically significant for the upcoming midterms. Critics argue that the tariffs imposed by the Trump administration have increased car prices and delayed investments. Despite this, Volkswagen Group CEO Oliver Blume described North America as a fixed part of the group’s future plan. He stated that localized products made in the US for the US market would help the company grow profitably. Audi has faced financial pressure recently, with tariffs costing the automaker 1.2 billion euros last year. Sales in the US have declined in recent periods. Reactions in Germany have been mixed, particularly given the current industrial climate. Volkswagen recently announced a radical cost-saving package that threatens several factories in Germany, including sites in Emden, Hanover, Zwickau, and Neckarsulm. The union IG Metall reported that wages for approximately 660,000 employees worldwide were frozen until 2030 following the termination of 10 of 13 collective agreements in late September. Lower Saxony Prime Minister Olaf Lies acknowledged that expanding into the US market is strategically correct but warned that growth in America must not come at the expense of German jobs and value creation. Christiane Benner, head of the metalworkers' union IG Metall and vice-chair of the Volkswagen supervisory board, demanded binding perspectives for employees at all locations, especially domestic ones. She stated that the executive board bears responsibility for providing clarity. A spokesperson for the employee representatives on the supervisory board noted that the board has not yet given final approval for the plant. They indicated that numerous open questions remain within the internal bodies regarding the project. Döllner, who has previously defended European carbon regulations and the phase-out of combustion engines, appeared visibly pleased during the interaction with the President. The event highlighted the intersection of corporate investment decisions and political campaigning ahead of the November vote.