Audi's chief executive announced plans to invest $4 billion and create 4,500 jobs at a new factory in Georgia during a rally with Donald Trump just days before the US midterm elections, drawing sharp criticism from German politicians, trade unionists and company officials back home.
Gernot Döllner took the stage in Perry, Georgia on Saturday alongside the US president to reveal that Audi would build its first American factory in Macon, producing 200,000 premium sport utility vehicles annually starting in the 2030s, with construction to begin next year. The move comes as Audi faces particular pressure from Trump's 15 per cent import tariffs, which cost the company an estimated 1.2 billion euros last year. Audi is the only premium carmaker without its own US factory. Döllner said the investment reflected the company's belief in the American market.
The appearance sparked fury among German labour leaders and politicians. Daniela Cavallo, head of Volkswagen's works council, said anyone who saw Trump's speech and then watched Döllner participate in the event must 'sink into the ground with shame', according to internal company communications released to German media. Cavallo accused VW's management of allowing itself to be 'turned into a puppet in the propaganda show of a highly dubious political figure'. Christiane Benner, head of the powerful IG Metall trade union and deputy chair of VW's supervisory board, called the appearance 'extremely embarrassing, politically unacceptable and unworthy of the company', warning that Döllner was in 'flagrant breach' of Audi's code of conduct requiring political neutrality ahead of elections. Isabel Cademartori, the German Social Democrats' transport spokesperson, called Döllner's actions a 'disgrace', referencing the Volkswagen Group's history.
The announcement sits uneasily alongside Volkswagen's plans to slash as many as 100,000 jobs and close factories in Germany. Audi's Neckarsulm facility, which employs 15,000 people, faces potential closure from the early 2030s. The company blamed its downsizing on competition from Chinese carmakers, US tariffs and the expensive shift to electric vehicles. A company spokesperson said each factory 'must do its part in terms of competitiveness and the long-term strength of Audi'. Benner warned that any major investment like the Macon plant would need approval from VW's supervisory board.
For UK savers, borrowers and investors, this development highlights how US tariff policy and political decisions can shape major international investment flows and reshape automotive manufacturing globally.