Audi plans $4bn Georgia SUV plant as tariffs reshape Volkswagen’s US strategy

Audi plans to build a $4bn assembly plant in Georgia, with production targeted for the early 2030s, in an investment that places the German luxury brand at the centre of Donald Trump’s campaign argument that tariffs are bringing manufacturing to the United States. Trump announced the project at a rally in Perry, Georgia, alongside Audi chief executive Gernot Döllner. According to the reports, the plant is expected to produce about 200,000 SUVs annually and create approximately 4,500 jobs.

The models identified for production are the Audi Q7, Q8 and Q9. Audi, which is owned by Volkswagen, said construction is scheduled to begin next year. The company’s supervisory board has not yet approved the move, according to DW, leaving the announcement short of a final corporate authorization.

Trump attributed the decision to his tariff policies, saying the company would not have come to the United States without them. DW reported that Audi paid €1.2bn in tariffs last year, while The Guardian cited Volkswagen’s estimate that tariffs have cost the wider group as much as €5bn annually before the effect of weaker sales. The figures cover different parts of the business and were presented differently by the publishers.

The project would shift some production of large SUVs from Bratislava in Slovakia to Georgia. The Guardian said Volkswagen still sees demand in the United States for large petrol-powered SUVs and is developing the Q9 with that market particularly in mind. The investment therefore reflects both pressure from trade measures and the company’s product priorities in the US.

Döllner defended the plan against criticism in Germany that it could weaken domestic industry. He said it followed “many months of careful planning and intense negotiations” and described the investment as a way to support Audi’s global business and potentially protect jobs in Germany. At the rally, he said Audi was bringing its “biggest and most premium SUVs” to Macon and called the project a long-term commitment to the American market.

The announcement has political significance because it came days before US midterm elections in which Republicans are seeking to retain control of Congress. DW reported that Trump told supporters the investment could create up to 30,000 jobs, a figure substantially higher than Audi’s stated estimate of 4,500. The reports do not explain the larger figure, which may refer to indirect employment, but Audi’s own published number is the more specific company estimate.

The Georgia plant also highlights the contrasting pressures facing Volkswagen. The group is dealing with intense Chinese competition, the cost of shifting toward electric vehicles in markets outside the United States and steep tariffs on imports from the European Union. In Germany, Volkswagen has begun cutting as many as 100,000 jobs and closing factories, according to The Guardian, which said the new American investment could intensify debate over the company’s domestic strategy.

Volkswagen has also moved some production of lower-priced vehicles, including the Jetta and Taos, from Mexico to the United States. The Georgia project thus forms part of a broader attempt to place more production inside the US market, even as the company continues to restructure operations at home.