Audi plans to build its first US factory in Georgia with $4bn investment for 200,000 SUVs a year. The appearance of CEO Gernot Döllner with Donald Trump at a campaign rally has now raised eyebrows. The new factory is a significant change in the OEM’s global manufacturing strategy.
It is well to be noted that in a politically charged setting, CEO Gernot Döllner announced one of the biggest manufacturing investments that Audi has ever made. US President Donald Trump unveiled plans for the first American production plant by Audi at a campaign rally in Perry, Georgia, prior to inviting Döllner to the podium.
Audi boss appreciated Trump for his support. The fact is that this entire appearance prompts questions about the political neutrality of the OEM, especially since Audi’s own guidelines limit public appearances with election candidates during the three months leading up to elections.
Yet the announcement of US factory in Georgia with $4bn investment represents a watershed moment for the German high-end manufacturer.
Production at the Georgia facility is expected to begin in the early 2030s, with the plant manufacturing Audi’s Q7, Q8 and Q9 SUV models. The company expects the site to have an annual production capacity of up to 200,000 vehicles, with approximately half of the output intended for export markets outside the United States. The investment is aimed at strengthening Audi’s position in the American premium vehicle segment, where the company sees further growth potential.
The decision also comes amid rising trade costs and pressure on Audi’s sales performance in the United States. The automaker currently imports all vehicles sold in the American market from Europe or Mexico. According to Audi CEO Gernot Döllner, tariffs cost the company approximately €1.2 billion ($1.4 billion) last year. Establishing local manufacturing capacity is expected to help the company reduce its exposure to import tariffs and other trade-related risks while improving its ability to serve customers in the region.
Audi said the investment decision followed an extensive site selection process that evaluated more than 70 locations over several months. The company also held negotiations with public officials before selecting Georgia for the proposed facility. Döllner described the project as part of Audi’s long-term growth strategy in the United States, noting that the country represents the world’s second-largest premium vehicle market.
The planned factory also comes as Volkswagen Group undertakes a major restructuring of its operations, including plans to cut 50,000 jobs and close four German plants between 2031 and 2034. Döllner has maintained that the US investment will not reduce Germany’s importance to Audi, stating that vehicle development and technology creation will continue to be centred there. The Georgia facility is intended to complement the company’s existing operations rather than replace its German manufacturing and engineering base.
With the planned investment, Audi will become the latest major German luxury automaker to establish vehicle production in the United States, following Mercedes-Benz and BMW. The company is positioning the new facility as a strategic step towards expanding its American business, increasing local production and building a stronger presence in the premium SUV market.