US President Donald Trump announced the investment on Saturday, during a campaign rally in Georgia, a key battleground state for his Republican Party in the midterm elections next week. Audi quickly confirmed the plan, saying it would build its first US factory near Macon, Georgia, costing around $4 billion (€3.6 billion) and creating some 4,500 jobs. The German automaker said construction would begin next year, with a planned annual production of up to 200,000 vehicles due to start in the early 2030s.
The firm plans to build premium SUVs for the US market at the plant, marking a "long-term commitment" to what it said was "one of the world's most important premium markets." The US investment comes as German automakers face unprecedented pressure from China, rising costs and two conflicts. Backed by huge government subsidies, Chinese rivals have stolen a march in the transition to electric vehicles (EVs), scaling up production of new models that are fast gaining market share in a crowded global auto market. BMW, Mercedes-Benz and Audi's parent company, Volkswagen— the world's second-largest automaker — have all issued profit warnings in recent months as margins come under pressure.
They've also announced major cost-cutting. VW is preparing to axe up to 100,000 jobs by 2030, while Audi's factory in Neckarsulm, which has around 15,000 staff, is one of four plants at risk of closure. Trump credited his 15% tariffs on European-made vehicles for Audi's investment, saying it "would not have happened without tariffs." While the commitment does feed into Trump's plan to bring manufacturing back to the United States from abroad, Audi said it was making the huge outlay for growth and resilience.
"The United States is one of the world's most important premium markets, and we have not yet realized our full potential. We are determined to change that ... This is about building a stronger Audi business in America — not only about building a factory," he said.
However, Trump's tariffs have undoubtedly added to the automaker's woes. Audi, which currently exports to the US market from Europe and Mexico, said the additional costs amounted to about €1.2 billion ($1.3 billion) last year. With more than 160,000 vehicles sold, Audi's US sales last year fell 16%, amid intense competition and after Trump scrapped subsidies on electric vehicles in its second-biggest market.
By building a US factory, Audi should be able to avoid or reduce Trump's tariffs, industry analysts say. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video There's been fierce criticism of the deal due to the severe pressure facing German automakers and because the new US investment could mean further job losses at home. Much of the criticism focused on Döllner's rally appearance alongside Trump.
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