Audi will build its first factory in the United States. The German carmaker plans to spend about $4 billion on a plant in Macon, Georgia. It will make 200,000 SUVs a year and create about 4,500 jobs.
Audi CEO Gernot Döllner announced the plan on stage with President Donald Trump at a campaign rally in Perry, Georgia, on Saturday night. Trump put the figure at $4.2 billion. He called it “the single largest investment in U.S. auto industry history, modern history.” He said construction could begin as early as next month.
The plant will build Audi’s largest SUVs, the Q7, Q8 and Q9. Some production will shift from Bratislava in Slovakia. “This is a long-term investment because we believe in the American market,” Döllner told the crowd. He said he accepted the invitation out of respect for the US.
Tariffs Drive the Decision
Audi is Volkswagen’s most important premium brand. It has been hit hard by Trump’s 15% tariffs on EU imports. Volkswagen says the tariffs cost it up to €5bn a year, before any drop in sales. This month it said it still faced “continued high pressure from import tariffs.” It has also moved some production of cheaper models, including the Jetta and Taos, from Mexico to the US.
The group still sees demand for big petrol SUVs in America. The Q9 will be Audi’s largest SUV ever, designed with the US market in mind. Trump has also pushed to cut sales of battery electric vehicles in favour of petrol cars.
A Political Moment
The timing stands out. A major European brand joined Trump on stage just days before the midterm elections. Republicans are polling poorly, weighed down by higher fuel prices from the war on Iran and by Trump’s trade fights. Trump has long argued that tariffs create factory jobs. Yet US vehicle and parts employment has fallen since he took office last year.
Trump credited Commerce Secretary Howard Lutnick with helping to secure the deal. He also claimed $40 billion in wider auto investments that he said would create 30,000 jobs.
Job Cuts at Home
The news may inflame tensions in Germany. Volkswagen has started cutting as many as 100,000 jobs and closing factories. It blames fierce competition from Chinese carmakers, the tariffs, and heavy spending on electric vehicles for markets outside the US. Critics also note that large petrol SUVs play a big role in global carbon emissions.
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