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German luxury carmaker Audi plans to invest $4 billion in a major assembly plant in the United States, a move aimed at reducing tariff costs and expanding its presence in the American market.
The announcement was made at a campaign event in Perry, Georgia, attended by US President Donald Trump.
Audi CEO Gernot Döllner defended his appearance alongside Trump despite criticism over the company’s participation in a political event. He said he attended out of respect for the invitation from the US president and the leader of a country where Audi plans to make a substantial investment.
The proposed factory is expected to produce around 200,000 sport utility vehicles (SUVs) annually and create about 4,500 local jobs. Construction is scheduled to begin next year, with production targeted for the early 2030s.
Audi plans to assemble its Q7, Q8 and Q9 models at the facility.
The investment comes amid mounting pressure from US import tariffs, which cost Audi about €1.2 billion ($1.4 billion) last year, according to the report. The company has so far imported all vehicles sold in the US from Europe or Mexico.
Establishing a domestic manufacturing base is expected to help Audi reduce tariff exposure and recover some of the losses.
The decision, however, has drawn criticism in Germany. The powerful IG Metall labour union has expressed concern over Audi’s appearance at a political event with Trump, warning of potential consequences for German industry and workers.
Olaf Lies, premier of Lower Saxony and a major Volkswagen Group shareholder, has offered a more positive assessment, arguing that Audi’s expansion in the US could also benefit Germany’s domestic economy.
The project still requires final approval from Volkswagen Group’s Supervisory Board before it can move forward.
