The president is eager to make the case that his vehicle tariffs are helping the American economy
Published Sun, Oct 25, 2026 · 08:42 PM
[PERRY, Georgia] US President Donald Trump announced on Saturday (Oct 24) that Audi plans to build a US$4 billion assembly plant in Georgia that will produce 200,000 SUVs annually, as he seeks to convince Americans to back Republicans in the November midterm elections.
Trump, who has pressured carmakers to move production to the US and has raised tariffs on vehicles, steel, aluminium and parts, made the announcement at a rally in Perry, near Macon in central Georgia, where Volkswagen’s premium subsidiary intends to build its first US assembly plant.
Last year, Trump’s tariffs dealt Audi a 1.2 billion euro (US$1.4 billion) blow, as it imports all its vehicles for the US market from Europe or Mexico.
Georgia has competitive election races for US Senate and governor; Trump is eager to make the case that his vehicle tariffs are helping the US economy.
Critics say the levies have boosted vehicle prices and that the trade uncertainty has delayed some carmaker investments.
“A long-term investment”
“We are planning to bring our biggest and most premium SUVs, and produce them here in Macon, Georgia,” Audi CEO Gernot Doellner said at the event. “This is a long-term investment because we believe in the American market.”
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Doellner on Sunday defended the announcement. “This decision was preceded by many months of careful planning and intense negotiations,” he told reporters.
“If the American president invites you, you accept the invitation. That is what respect for the office and for the country in which we invest demands.”
The plan is “not a decision against Germany”, he added, arguing that it could protect jobs at home by strengthening Audi’s global business.
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In Germany, there has been increasing tension between Volkswagen management and workers over massive job cuts in the carmaker’s home market, including possible plant closures in light of rising costs and stiff Asian competition.
“It is right and necessary to better tap into the US market via a new plant,” said Christiane Benner, head of the IG Metall union and Volkswagen’s deputy supervisory board chair. “However, firm prospects for workers at all sites, particularly those here in Germany, must be clearly defined and set out.”
She said a final decision on the investment would have to be taken by Volkswagen’s supervisory board.
Olaf Lies, state premier of the German state of Lower Saxony, Volkswagen’s second-largest shareholder, said that expanded production in the US was an opportunity provided German workers also benefit.
“Growth in America must secure jobs and value creation here and must not displace them,” he said.
Audi said the investment will create about 4,500 jobs. Construction is scheduled to begin next year, with production starting in the early 2030s, it added.
A US official said that the plant is expected to assemble the Audi Q7, Q8 and Q9 SUVs.
Audi also plans to build 25,000 vehicles a year in neighbouring South Carolina, the official said, adding that some of the vehicles, now built in Europe, would be exported.
Those vehicles will be assembled at a US$2 billion plant of Volkswagen’s off-road brand Scout Motors that is under construction in Blythewood, near the state capital, Columbia, the official said.
“We regard the region as a key market for profitable growth,” said Volkswagen CEO Oliver Blume. “A potential Audi plant in the US would create further conditions for this.”
Republican credits tariffs for deal
Trump has cut government incentives for electric vehicles, causing a significant reduction in EV and battery production in the country. US vehicle and parts employment has fallen since Trump took office IN 2025.
A gold Audi with manufacturer licence plates was parked outside Trump’s rally.
US Senator Bernie Moreno, an Ohio Republican, said late on Saturday that “with this investment, Audi will build all of their SUVs exclusively in the US”.
He added that the Audi plant “would never have happened without tariffs, without common sense regulations and without eliminating California’s ability to regulate fuel economy standards”.
Audi sales have fallen for two consecutive years and slid 7 per cent in the first half of 2026 as fierce competition in China and US tariffs hit demand. Audi’s US sales are down 16 per cent this year.
Audi’s Neckarsulm plant in south-west Germany is one of four German Volkswagen plants facing possible closure after 2030.
In July, Toyota said it would spend US$3.6 billion to build a 2.5 million square foot lorry assembly line on its manufacturing campus in San Antonio, Texas, and shift some lorry production to the US from Mexico.
The Japanese carmaker said the expansion would be completed by 2030, creating 2,000 jobs.
Honda Motor is considering building a US assembly plant, but has warned it may not unless the US-Mexico-Canada Agreement (USMCA), a trade deal, is extended. Hyundai said in 2025 that if it had certainty about USMCA, it “would immediately unlock over US$20 billion in new American investments”. REUTERS