Audi CEO cites tariffs and growth goals for $4 billion Georgia plant
Audi announced a $4 billion SUV factory in Georgia, saying the move will boost U.S. sales and lower exposure to tariffs, while the brand remains committed to its German operations.
Audi's chief executive Gernot Dollner defended the company's decision to build a $4 billion plant in Georgia, describing it as a strategic step to expand sales in the United States and lessen the impact of vehicle tariffs. The facility, Audi's first manufacturing site in the U.S., was unveiled by President Donald Trump at a rally in the state.
"We have significantly greater ambitions for Audi in America," Dollner told reporters, adding that the United States is the second-largest premium market and that the brand has not yet fully tapped its potential.
The announcement coincides with a broader restructuring at Volkswagen, Audi's parent, which includes plans to cut 50,000 jobs and close four German plants between 2031 and 2034. Dollner emphasized that the Georgia plant does not diminish Germany's role, noting that vehicle development and technology creation will continue there.
He also highlighted that localized production is intended to address rising operational costs and the effect of U.S. tariffs, which have been reduced from 25% to 15% on German-made vehicles. Audi reported that tariffs cost the brand about €1.2 billion ($1.4 billion) last year while it imported all U.S. market vehicles from Europe or Mexico.
According to Dollner, the decision followed a three-year evaluation of more than 70 potential sites and extensive negotiations with officials. He said the Trump administration requested that Audi announce the plant at the Georgia rally, which was held ahead of the November 3 midterm elections.
Audi of America President Vito Paladino said the Georgia facility will begin producing the Q7, Q8 and Q9 models in the early 2030s, with an annual capacity of up to 200,000 vehicles, about half of which are expected to be exported. He added that further details on U.S. investments and production plans will be released later.
Audi's U.S. deliveries remained roughly unchanged through the third quarter, following a 16% decline in sales from 2024 to 2025.