Audi has defended its plan to invest USD 4 billion in a new assembly plant in Georgia after President Donald Trump announced the project at a campaign rally. The German automaker expects the site to produce 200,000 SUVs annually and create about 4,500 jobs. However, Volkswagen's supervisory board must approve the investment before it can proceed.
The announcement comes ahead of the November 3 US midterm elections, as Trump's trade tariffs continue to trouble European carmakers, particularly those that ship vehicles into America.
Audi Chief Executive Gernot Doellner appeared with Trump at a rally Saturday in Perry, near Macon. On Sunday, he defended both the project and his appearance alongside the president. He said months of careful preparation and talks with US officials preceded the public announcement in Georgia.
Audi Chief Defends Plant Plan and Rally Appearance
Doellner told reporters the proposed investment followed extensive negotiations rather than a sudden political decision. He also said accepting an invitation from the American president showed respect for the office and the country receiving Audi's investment.
Trump announced the Georgia project while campaigning for Republican candidates. Georgia has competitive contests for governor and the US Senate, giving the rally added political importance ahead of the November vote.
The president has argued that tariffs support domestic manufacturing. During the rally, he presented Audi's proposed factory as evidence of increased automotive investment in the United States. Yet the company has not disclosed all terms of its discussions with Washington.
Doellner declined to say whether the arrangement includes relief from import tariffs. Volkswagen's board review also means the plan has not reached final approval, despite the announcement and Audi's stated construction timetable.
Tariff Costs and German Job Concerns
The proposed plant comes as import duties place substantial pressure on Audi. The company said US tariffs on vehicles, auto parts, steel and aluminum cost it around €1.2 billion, or USD 1.4 billion, last year.
Audi currently imports every vehicle it sells in the American market from Europe or Mexico. Building cars closer to US customers would expand its local manufacturing operations, although the company has not detailed the financial benefits.
In Germany, unions have questioned Doellner's participation in Trump's election rally. A spokesperson for IG Metall called the decision difficult to understand and accused Trump of seeking to weaken Germany's automotive industry. Volkswagen faces job cuts and possible plant closures.
IG Metall leader Christiane Benner supported strengthening Audi's American business but called for clear employment prospects across Volkswagen's sites, especially in Germany.
Lower Saxony's premier, Olaf Lies, took a similar position. His state ranks as Volkswagen's second-largest shareholder. He said American growth should also protect German jobs and economic activity rather than replace them.
Read More: Audi Drivers Can Now Stream Spotify Without Connecting Their Phone
Georgia Output, South Carolina Plans and Timeline
Audi expects construction at the Georgia site to begin next year, with vehicle production starting in the early 2030s. A US official said the new plant should assemble the Q7, Q8 and Q9 SUVs.
The official also described plans for Audi to assemble another 25,000 vehicles annually in neighboring South Carolina. That output would come from Scout Motors' USD 2 billion factory under construction in Blythewood, near Columbia.
Scout Motors, Volkswagen's off-road vehicle brand, is developing the South Carolina facility. According to the official, some vehicles currently made in Europe would instead come from the American production network for export.
Volkswagen Chief Executive Oliver Blume described the United States as an important market for profitable growth. He said a future Audi factory would create additional opportunities for the group in the region.
At Saturday's rally, a gold Audi carrying manufacturer license plates stood outside the venue. Audi has not disclosed the full terms of its discussions with the US government.
Final Thoughts
Audi plans a USD 4 billion Georgia plant with a capacity for 200,000 SUVs and around 4,500 jobs. Volkswagen's supervisory board must still approve the project. The proposal comes amid tariff costs and German labor concerns, while Audi also plans production at Scout Motors' South Carolina facility.