Audi said it will spend $4bn to build its first factory in the United States, as its parent company Volkswagen faces mounting pressure from Donald Trump's tariffs and competition from Chinese carmakers. The German brand's chief executive, Gernot Döllner, announced the factory in Macon, Georgia at a Trump campaign rally on Saturday night, saying the company aims to build 200,000 SUVs there annually and create 4,500 jobs. The facility will produce the Q7, Q8 and Q9 SUVs, with some production shifting from Bratislava in Slovakia.
The investment underscores the urgency facing Volkswagen to navigate Trump's policies on trade and electric vehicles. Volkswagen has said Trump's tariffs cost it up to €5bn a year before accounting for lower sales, and the company noted this month it was still struggling with "continued high pressure from import tariffs". The 15% tariffs on EU imports have hit Audi particularly hard, while Trump's efforts to reduce battery electric vehicle sales have also damaged the brand. The carmaker has already been forced to shift production of cheaper models, including the Jetta saloon and Taos SUV, from Mexico to the US.
However, the Georgia investment sits uneasily alongside sweeping cuts at home. Volkswagen has started cutting as many as 100,000 jobs and closing factories in Germany, which the company has attributed to intense Chinese competition, the tariff burden and the need for substantial investment in the shift to electric vehicles for markets outside the US. The timing has added to tensions as the German manufacturer grapples with these competing pressures.
Döllner said he accepted the invitation to speak at Trump's rally "out of respect for the US", and stressed that "this is a long-term investment because we believe in the American market". Volkswagen's chief executive Oliver Blume told investors in July that "US tariffs create a significant burden and restrict international trade". Despite these concerns, Audi has identified continued demand in the US for large petrol SUVs, and is planning its largest-ever SUV, the Q9, with American buyers in mind.
For UK car industry investors and workers, the move highlights how global automotive manufacturers are reshaping European operations under tariff pressure and shifting to serve the American market, potentially affecting long-term investment decisions in Britain.