Audi CEO Gernot Doellner defended the company’s proposed $4 billion investment in a new U.S. assembly plant in Georgia after appearing alongside President Donald Trump at a campaign rally. Trump said the plant would produce as many as 200,000 sport-utility vehicles a year and create about 4,500 jobs, although the project still requires approval from Volkswagen’s supervisory board.
The planned factory would deepen Audi’s manufacturing footprint in the United States at a time when tariffs and trade policy are reshaping the global automotive industry. Construction is expected to begin next year, with production targeted for the early 2030s.
Audi says the decision followed months of planning
Doellner said the investment was the result of extended negotiations and strategic planning rather than a sudden political decision.
He also defended his appearance with Trump, saying that accepting an invitation from the U.S. president reflected respect for the office and for a market in which Audi plans to invest heavily.
Final approval has not yet been granted
Volkswagen’s supervisory board must still approve the investment. That means the project is not yet fully committed despite Trump’s public announcement.
Large automotive investments typically require detailed agreements covering incentives, infrastructure, labor, supply chains and long-term production planning.
The Georgia plant would focus on large SUVs
A U.S. official told Reuters that the facility is expected to assemble Audi Q7, Q8 and Q9 models.
Those larger vehicles are particularly important in the U.S. market, where SUVs account for a significant share of premium-brand sales.
Tariffs are pushing automakers toward local production
Trump has argued that automotive tariffs encourage manufacturers to build more vehicles inside the United States.
Audi said tariffs cost it about €1.2 billion last year, creating a strong financial incentive to reduce reliance on imported vehicles.
German unions are worried about jobs at home
IG Metall criticized Doellner’s appearance at the rally and warned that U.S. expansion should not come at the expense of German production.
Germany’s auto industry is already dealing with job reductions, high energy costs and growing competition from Chinese electric-vehicle manufacturers.
Regional politicians want guarantees
Lower Saxony, which is Volkswagen’s second-largest shareholder, said expansion in the United States could be positive if it also protects jobs and value creation in Germany.
That reflects the political sensitivity surrounding any shift of production from European plants to North America.
Audi is not alone in expanding U.S. capacity
Volkswagen’s Scout Motors brand is building a $2 billion plant in South Carolina. Audi also plans to assemble about 25,000 vehicles a year at that facility.
Using multiple U.S. sites could help Volkswagen Group brands reduce tariff exposure and shorten supply chains.
Georgia offers a growing auto cluster
Georgia has attracted major vehicle and battery investments in recent years because of logistics infrastructure, state incentives and access to ports.
Audi would join a broader southeastern U.S. manufacturing corridor that includes assembly and battery plants across Georgia, South Carolina, Alabama and Tennessee.
The investment is politically useful for Trump
Georgia is a competitive state in U.S. elections, and Trump is using factory announcements to argue that his tariff policies are bringing manufacturing jobs back to the country.
That political framing creates additional scrutiny for Audi, particularly in Germany.
Economics will determine whether the project proceeds
The strongest argument for the plant is not campaign politics but cost. If tariffs remain high and Audi expects U.S. demand to stay strong, local production becomes more attractive.
The supervisory board will therefore weigh incentives, long-term demand and the impact on existing plants before making the final decision.
Sources
- Audi and Volkswagen statements
- Reuters, Oct. 25, 2026
Supply chains could follow assembly capacity
A new Audi plant would not operate in isolation. Vehicle assembly typically attracts component suppliers, logistics companies and service providers to nearby regions. Georgia and neighbouring states already host battery, tyre and auto-parts investments, giving Audi a developing supplier base. Local sourcing could also reduce the tariff exposure of components if trade barriers remain high.
The project may therefore become a test of whether tariff policy can reshape premium-car manufacturing without damaging existing European plants. Audi must balance the political and economic benefits of producing in the United States against the risk of excess capacity if demand weakens. The supervisory board’s final decision will likely depend on long-term sales forecasts rather than the immediate political value of the announcement.
