Audi announces plans to invest $4bn in first US production site in Georgia

Audi CEO Gernot Döllner chose a politically controversial setting to announce one of the company's most significant manufacturing investments. At a campaign rally in Perry, Georgia, US president Donald Trump announced plans for Audi's first American production plant before inviting Döllner onto the stage. The Audi chief thanked Trump for his support. The appearance raises questions about the OEM's political neutrality, particularly as Audi's own guidelines restrict public appearances with election candidates in the three months preceding elections. 

Despite some critism, Döllner defended his appearance on stage with Trump when questioned by the press. "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."

Regardless of the controversy surrounding the way it was announced, the announcement itself marks a major turning point for the German premium manufacturer.

Audi intends to invest approximately $4 billion in a new facility in Georgia, creating around 4,500 jobs and establishing annual capacity for 200,000 vehicles. Construction is scheduled to begin in 2027, with production expected to start in the early 2030s. The project would establish North America as a third major pillar of Audi's global manufacturing network alongside Europe and China.

Tariffs and declining sales strengthen the case for US production

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The investment follows years of discussions about establishing an Audi manufacturing operation in the US. Unlike BMW and Mercedes-Benz, which have operated American assembly plants for decades, Audi has so far relied on imports to supply the market.

That position has become increasingly difficult to maintain under the Trump administration's tariff policies. Additional import costs, combined with weaker vehicle sales, have increased pressure on Audi to improve the competitiveness of its North American business.

Tariffs cost Volkswagen Group $4 billion in 2025, with $1.4 billion of that on Audi, so the new plant’s price tag equals almost three years of Audi’s 2025 bill.

Döllner noted that Audi is currently loss-making in the US. “By investing here, we will make our business model more robust,” he said, with Audi believing that a stronger North American presence should reduce exposure to trade and currency risks, supporting growth.

The decision also reflects a broader shift towards regionalised manufacturing, with OEMs reassessing their manufacturing footprints, investment plans and supplier networks in response to changing trade conditions.

“We have much greater ambitions for Audi in America," Döllner added, emphasising that that local production is essential to developing a more competitive business. "The United States is one of the world’s most important premium markets, and we have not yet realised our full potential. We are determined to change that – with premium products, a stronger brand and a competitive local production base. This is about building a stronger Audi business in America – not only about building a factory.”

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Audi chooses greenfield manufacturing in Georgia

The new plant will be built at the Middle Georgia Mega Site near Perry. According to Audi, the location offers established logistics infrastructure, access to skilled workers, an automotive supplier network and space for future expansion.

The choice of a greenfield development is significant from a manufacturing perspective. Rather than integrating Audi models into existing Volkswagen Group production lines, the OEM can develop its factory layout, manufacturing systems and logistics processes without the constraints of an established facility.

"A greenfield plant gives us the opportunity to rethink our manufacturing operations from the outset," said Gerd Walker, Audi board member for production and logistics. "We can create highly efficient and flexible structures, integrate state-of-the-art technologies and establish a strong local supplier network."

Audi intends to design the plant for flexible production and changing market requirements. However, the company has not yet disclosed details of its planned automation systems, body shop architecture or assembly processes.

Which Audi models will be built in the US?

Following the initial announcement, Döllner confirmed that Audi's new plant at the Middle Georgia Mega Site in Macon will build the Q7, Q8 and Q9 – three large SUVs that all come from Slovakia today.

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“We are planning to bring our biggest and most premium SUVs and produce them here in Macon,” Döllner said. “This is a long-term investment because we believe in the American market.”

But Georgia might not be Audi’s only planned US build. A US official told Reuters that Audi also plans to manufacture 25,000 vehicles per year at the $2bn Scout Motors plant under construction in Blythewood, South Carolina, but this has yet to be confirmed.

On October 24, a Scout spokesperson said that the brand had no announcements to share. Even with those 25,000 added, locally built Audis would equal only about three-quarters of last year’s US volume, and the smaller models would still be imported.

Vito Paladino, president of Audi of America, hinted that more is coming. “We do have some other investments that we look forward to announcing soon about Audi,” he said.

Investment raises questions for Audi's European plants

The project still requires approval from the Volkswagen Group Supervisory Board. However, Audi Supervisory Board chairman Manfred Döss has already expressed support for the investment, arguing that the company's long-term competitiveness cannot be secured through cost reductions and efficiency improvements alone.

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The announcement also comes as Audi and Volkswagen continue to face cost pressures in Germany. While Audi is planning an entirely new manufacturing facility in Georgia, its European production strategy has increasingly focused on maximising the efficiency of existing plants.

One example is the integration of the A2 e-tron into existing production at Ingolstadt. The OEM is reusing more than 1,200 manufacturing components, including approximately 250 robots, while sharing body production infrastructure with the A3.

The contrast is striking. In Germany, Audi is seeking to reduce investment requirements through equipment reuse and the adaptation of established production lines. In Georgia, the manufacturer intends to build a new factory with manufacturing flexibility designed into its operations from the beginning.

Audi maintains that the US investment is not a decision against Germany. A company spokesperson told German news agency DPA that a stronger and more profitable North American business could also help support capacity utilisation at its German plants.

For the German OEM, the US investment addresses a competitive disadvantage that has become more pronounced under the current tariff regime. But with production not expected until the early 2030s, the company will continue to depend on imports in the meantime. Its first American factory is therefore a long-term restructuring of its manufacturing footprint rather than an immediate answer to the pressures facing its US business.