Audi’s planned Georgia factory exposes tensions over jobs and political neutrality

Audi’s proposed $4 billion factory in Georgia has become the centre of a dispute in Germany over the carmaker’s commercial strategy, domestic employment and the political judgment of its chief executive. US President Donald Trump unveiled the plan at a campaign rally in the battleground state on Saturday, with Audi CEO Gernot Döllner beside him. Audi said the plant near Macon would create approximately 4,500 jobs, begin construction next year and eventually produce as many as 200,000 premium SUVs annually.

Production is scheduled to start in the early 2030s. The investment would give Audi its first manufacturing site in the United States. The company said the US was one of the world’s most important premium-car markets but acknowledged that it was not currently making a profit there.

Audi’s US sales fell 16% last year despite more than 160,000 vehicles being sold. Tariffs are an important part of the calculation. Audi said the additional cost of US duties on vehicles made in Europe and Mexico amounted to about €1.2 billion last year.

Trump said the 15% tariffs had caused the investment, while Audi presented the project as part of a broader effort to grow and make its business more resilient. An Audi spokesperson said the factory was not a decision against Germany but a step toward global competitiveness. Manfred Döss, chairman of Audi’s supervisory board, said the company’s future could not be secured through cost-cutting and efficiency alone and required investment in new opportunities.

The decision has nevertheless landed badly with German labour representatives. IG Metall leader Christiane Benner called Döllner’s appearance at the rally extremely embarrassing and politically unacceptable. She said it breached Audi’s code of conduct, which requires political neutrality and bars appearances with elected candidates or parties during the three months before an election.

Daniela Cavallo, who leads Volkswagen’s works council, criticised the rally’s political setting while acknowledging that a US plant could make business sense as Volkswagen seeks to expand its American market share. Social Democratic politician Isabel Cademartori called Döllner’s role a disgrace and cited Volkswagen’s historical origins under the Nazis. The German government declined to comment, saying the matter concerned a business decision.

The investment still requires approval from Volkswagen’s supervisory board, according to Benner. The scrutiny comes as Volkswagen plans as many as 100,000 job cuts by 2030 and faces pressure to reduce costs amid competition from Chinese manufacturers, US tariffs and the expensive shift to electric vehicles. Audi’s Neckarsulm plant, employing about 15,000 people, is among four German factories reported to face possible closure from the early next decade.