Audi Will Build Its First US Factory in Georgia, Trump Announces, per Reuters
Audi Picks Georgia for Its First US Plant
Audi will build its first-ever US auto factory in Georgia, President Donald Trump announced on Saturday.
Audi plans to build a $4 billion assembly plant in Georgia that will produce 200,000 SUVs annually, per Reuters. Trump made the announcement at a rally in Perry, near Macon in central Georgia, where Volkswagen's premium subsidiary intends to build the plant.
The plant is expected to assemble the Audi Q7, Q8 and Q9 SUVs, a US official told Reuters.
Audi said the investment will create approximately 4,500 jobs. Construction is scheduled to begin next year, with production starting in the early 2030s, Audi said.
"We Believe in the American Market"
Audi CEO Gernot Doellner appeared at the event alongside Trump. "We are planning to bring our biggest and most premium SUVs, and produce them here in Macon, Georgia," Doellner said. "This is a long-term investment because we believe in the American market."
"Think of that. 200,000 cars a year. That's incredible," Trump said at the rally.
On Sunday, Doellner defended standing with Trump at a campaign event. "This decision was preceded by many months of careful planning and intense negotiations," he told reporters. "If the American president invites you, you accept the invitation. That is what respect for the office and for the country in which we invest demands."
A final decision on the investment still has to be taken by Volkswagen's supervisory board for it to go ahead, per Reuters.
Tariffs Did the Persuading
Trump has pressured automakers to move production to the United States and has raised tariffs on autos, steel, aluminum and parts.
Last year, those tariffs dealt Audi a 1.2 billion euro ($1.4 billion) blow, Audi has said, because it imports every vehicle it sells in the US from Europe or Mexico.
Critics say the tariffs have also boosted vehicle prices in the US and that trade uncertainty has delayed some automaker investments. In Germany, a spokesperson for the IG Metall union called Doellner's decision to appear with Trump during the election "hard to understand."
Georgia has competitive races for US Senate and governor, and the announcement came as Trump campaigns for Republicans ahead of the November 3 midterm elections.
What This Means for Markets
The plant is years from production, but it is the latest sign that tariff policy is redrawing the North American auto map, with foreign brands adding US capacity rather than paying duties on imports.
Volkswagen trades in the US through its ADR, VWAGY. US-listed automakers that compete with Audi in premium SUVs include GM and F, while STLA faces the same tariff math on its own imports.
Auto suppliers with Georgia and Southeast exposure are also worth watching as construction timelines firm up, along with any incentive package the state assembles for the project.
Bottom Line
Audi spent decades importing every car it sold in America. A $4 billion plant near Macon, 200,000 SUVs a year and 4,500 jobs say the tariff era changed that calculation.
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