The Audi CEO walked onstage at a Trump campaign rally to announce a $4 billion factory. A day later, he was explaining why.
The Announcement
President Donald Trump announced on Saturday, Oct. 24, that Audi plans to build its first U.S. assembly plant in Georgia, according to Reuters and CNBC. He made the announcement at a campaign rally in Perry, near Macon, with Audi CEO Gernot Döllner beside him.
Here's what Audi itself says about the plan, in a company release:
- an investment of about $4 billion
- roughly 4,500 jobs
- capacity for up to 200,000 vehicles a year
- construction beginning in 2027 and production starting in the early 2030s
Georgia Gov. Brian Kemp's office says the plant will go up at the Middle Georgia Megasite. Its timeline is a little more specific: grading in 2027, construction in 2028 and full production in 2031.
"We are planning to bring our biggest and most premium SUVs, and produce them here in Macon, Georgia," Döllner said at the rally, per CNBC. "This is a long-term investment because we believe in the American market."
A U.S. official told Reuters the plant is expected to build the Q7, Q8 and Q9 SUVs. The same official said Audi also plans to assemble 25,000 vehicles a year at Volkswagen's Scout Motors plant in Blythewood, South Carolina, which is still under construction.
https://twitter.com/RapidResponse47/status/2114148679351169136
What Trump Said vs. What Audi Said
The rally version and the official version don't quite match. In a clip posted by the White House's Rapid Response account, Trump says Audi "has just committed to invest $4.25 BILLION in Macon — to begin construction next month." Audi's own figures are about $4 billion, with construction beginning in 2027.
In a second clip from the same account, Trump says Audi is "closing up in Mexico and Canada." Audi's release doesn't say that. Reuters reports that Audi currently imports all of its U.S. vehicles from Europe or Mexico.
The deal also isn't final yet. Reuters reports that Volkswagen's supervisory board still has to sign off before it goes ahead.
The CEO Defends the Rally
On Sunday, Döllner pushed back on criticism of his appearance. "This decision was preceded by many months of careful planning and intense negotiations," he told reporters, according to Reuters. "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."
Reuters reports that Döllner wouldn't give full details of the deal, including whether it comes with any tariff relief.
The Tariff Backdrop
Reuters reports that Audi has said Trump's tariffs on autos, steel, aluminum and parts cost it about €1.2 billion ($1.4 billion) last year. Trump wants to show the tariffs are bringing manufacturing home ahead of the Nov. 3 midterms, and Georgia has competitive races for both Senate and governor. Critics say the tariffs have raised car prices and delayed some automaker investments, according to Reuters.
Germany Isn't Thrilled
Back home, Volkswagen workers are facing job cuts and possible plant closures, according to Reuters. A spokesperson for Germany's IG Metall union called Döllner's decision to stand with Trump during the campaign "hard to understand." The spokesperson added that Trump "wants to weaken our domestic economy, particularly the automotive sector."
Christiane Benner, who leads IG Metall and is deputy chair of Volkswagen's supervisory board, said a U.S. plant was "right and necessary." She added that "firm prospects for workers at all sites, particularly those here in Germany, must be clearly defined and set out."
Lower Saxony premier Olaf Lies, whose state is Volkswagen's second-largest shareholder, made a similar point. "Growth in America must secure jobs and value creation here and must not displace them," he said, per Reuters.
The Bottom Line
Georgia is getting a big luxury-SUV plant, as long as Volkswagen's board approves it, and Trump got a big campaign-season headline. Whether the factory arrives on Trump's timeline or Audi's is the part to watch.
