Audi announces first US factory during Trump campaign rally

Audi has announced plans to build its first dedicated manufacturing plant in the US, making the announcement during a campaign event for Donald Trump. The move comes as Trump continues to pressure foreign companies to relocate production to the US to avoid high import tariffs.

Investment in Georgia

According to reports from taz and Tagesschau, the new plant will be located in the state of Georgia. During a speech to supporters, Trump claimed that Audi would begin construction on the massive facility next month, with an expected annual production capacity of 200,000 vehicles.

However, an official Audi statement contradicts this timeline, stating that the start of construction is scheduled for 2027. The company intends to start production of premium SUVs for the US market in the early 2030s.

In a move that underscored the political alignment, Trump called Audi CEO Gernot Döllner onto the stage, where Döllner thanked Trump for his support. This appearance occurred less than ten days before the US midterm elections on November 3, where the Republican Party seeks to defend its narrow majorities in the House and parts of the Senate.

Audi expects to invest approximately four billion US dollars (around 3.6 billion euros) and create roughly 4,500 jobs.

Tariff pressure and corporate strategy

The timing of the announcement follows a pattern of pressure exerted by the Trump administration. Since the beginning of his second term in January 2025, Trump has used the threat of high tariffs on imports to encourage foreign firms to move operations to the US, offering tariff exemptions as an incentive to boost the domestic economy and industrial employment, according to taz.

Volkswagen Group CEO Oliver Blume stated in a communication that the region is a vital market for profitable growth. He noted that a potential Audi plant would create the necessary conditions for localised products from the US for the US.

Reactions from labour and management

While the expansion is seen as a strategic move for the Volkswagen Group, German labour representatives have responded with caution. Christiane Benner, First Chairwoman of IG Metall, described the expansion into the US market as "right and necessary" but issued a warning regarding the impact on domestic workers.

Benner stated that the company's management has an obligation to define and secure binding perspectives for employees at all locations, specifically emphasising those at home. She also noted that the final decision regarding the new US factory remains subject to approval by corporate bodies, specifically the supervisory board of Volkswagen AG, where she serves as deputy chairwoman.

This piece was generated automatically by an AI model from the sources listed below. It has not been reviewed by a human editor.

Sources

• Während Trump-Wahlkampftour: Audi kündigt SUV-Werk in den USA an — taz
• Audi kündigt US-Werk an - auf Trumps Wahlkampftour — Tagesschau