Audi to invest $4bn in its first US factory
German carmaker Audi has said it will build its first US factory in Georgia with a $4bn investment. The announcement was made at a Donald Trump campaign rally.
German premium carmaker Audi said on Saturday night that it will build its first factory in the United States, in Macon, Georgia, investing $4bn (about £3bn). Audi is the most important premium brand of its parent company Volkswagen, which is struggling with the heavy tariffs imposed by US President Donald Trump.
Audi chief executive Gernot Döllner made the announcement on stage alongside Trump at a campaign rally, just days before the US midterm elections for Congress. Such a move is unusual for a major European brand. Trump's Republican party is trying to keep control of both houses of Congress but is polling poorly, as it faces higher fuel prices caused by Trump's war on Iran and a trade war with some of the largest US trading partners.
Production plans
Audi aims to build 200,000 sport utility vehicles (SUVs) at the plant, creating 4,500 jobs. The factory will make the Q7, Q8 and Q9, with some production shifting from Bratislava in Slovakia. The Q9 is planned as the company's largest-ever SUV and is designed with the American market in mind. The group says demand for large petrol SUVs remains in the US.
"We are planning to bring our biggest and most premium SUVs, and produce them here in Macon, Georgia," Döllner said, calling it a long-term investment based on belief in the American market. He added that he accepted the invitation to speak out of respect for the US.
Tariff burden and jobs in Germany
Audi has been hit by the 15% tariff on EU imports and by Trump's efforts to reduce battery electric vehicle sales in favour of petrol cars. Volkswagen has said the tariffs cost it up to €5bn a year, before the effect of lower sales. The group was also forced to move some production of its cheapest models, such as the Jetta and Taos, from Mexico to the US.
Trump has long argued that tariffs boost manufacturing employment, yet US vehicle and parts employment has fallen since he took office last year.
In Germany, Volkswagen has begun cutting as many as 100,000 jobs and closing factories, citing competition from Chinese carmakers, tariffs and the need to invest heavily in electric vehicles for markets other than the US. The new American plant may add to tensions at home.
