Audi has announced plans to invest approximately $4 billion in its first American manufacturing plant, marking a major move for the German luxury automaker. The facility will be built in Georgia and is expected to produce some of the brand’s largest SUVs.
The announcement comes as Audi struggles with the financial impact of U.S. import tariffs. Unlike BMW and Mercedes-Benz, which already manufacture vehicles in America, Audi currently imports every vehicle it sells in the country.
The planned factory would have an annual production capacity of around 200,000 vehicles and create approximately 4,500 jobs. Construction is scheduled to begin in 2027, with production expected to start in the early 2030s.
However, the announcement has also sparked controversy in Germany after Audi CEO Gernot Döllner appeared alongside President Donald Trump at a political rally. The investment itself still requires final approval from Volkswagen’s supervisory board.
Audi Wants To Build Its Biggest SUVs In America
The proposed factory will be located at the Middle Georgia Megasite in Peach County, near Macon. According to Reuters, the facility is expected to manufacture the Audi Q7, Q8, and Q9 SUVs, although Audi hasn’t officially confirmed the complete model lineup.
The investment could help Audi reduce its exposure to import tariffs, which reportedly cost the company approximately $1.4 billion in 2025. Producing vehicles locally would also bring Audi closer to rivals BMW and Mercedes-Benz, which operate major SUV factories in South Carolina and Alabama, respectively.
According to Reuters, Audi could also assemble approximately 25,000 vehicles annually at Volkswagen Group’s upcoming Scout Motors factory in South Carolina. That arrangement has not been formally confirmed.
Audi CEO Faces Criticism Over Trump Rally Appearance
The factory plans were announced at a campaign rally in Perry, Georgia, on October 24, where Döllner joined Trump on stage. His appearance drew criticism from German labor representatives, who questioned the decision to participate in a political event shortly before the U.S. midterm elections.
Der Spiegel reports that Volkswagen Group works council chairwoman Daniela Cavallo condemned the appearance, arguing that it conflicted with Audi’s internal guidelines on political neutrality. IG Metall union leader Christiane Benner also criticized Döllner’s participation, calling it politically unacceptable.
Döllner defended his decision, explaining that months of negotiations preceded the announcement and that accepting an invitation from the American president was a matter of respect for the office and the country.
The $4 Billion Investment Isn’t Final Yet
Despite the announcement, Volkswagen’s supervisory board must still approve the project. German employee representatives have raised concerns about how additional American production could affect jobs and existing factories in Europe.
Audi believes local manufacturing could strengthen its position in one of the world’s largest luxury vehicle markets. At the moment, however, the Georgia factory is still a proposal, with Volkswagen’s supervisory board holding the final say.