The automaker has defended its decision to stand by Trump as it moves forward with plans for a major US factory investment.
Audi has defended its proposed $4 billion investment in a new US assembly plant in Georgia after Chief Executive Gernot Döllner appeared alongside President Donald Trump at a rally in Perry, near Macon, on October 25. The planned facility would produce up to 200,000 SUVs annually, according to Trump’s announcement.
Döllner said the investment proposal followed months of planning and negotiations while making clear that Volkswagen’s supervisory board must still give final approval before the project can proceed.
Speaking to reporters on Sunday, Döllner said, “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 proposed factory comes as Trump promotes his auto tariffs as a way to strengthen US manufacturing ahead of the November midterm elections. However, the policy has also increased costs for European automakers and drawn criticism over its effect on vehicle prices and investment decisions in the United States.
Audi Says Georgia Plant Could Create 4,500 Jobs
Audi said the proposed investment would create approximately 4,500 jobs. Construction is scheduled to begin next year, with production expected to start in the early 2030s.
A US official told Reuters that the facility is expected to assemble Audi’s Q7, Q8 and Q9 SUVs. Audi has not disclosed the full details of the proposed investment agreement, including whether it would receive tariff relief.
Volkswagen Chief Executive Oliver Blume said the United States remained an important market for the group’s growth plans.
“We regard the region as a key market for profitable growth,” Blume said. “A potential Audi plant in the US would create further conditions for this.”
A final decision on the Georgia project rests with Volkswagen’s supervisory board.
Trump’s Auto Tariffs Add Pressure on Volkswagen
The investment proposal comes as Volkswagen faces pressure from US tariffs and difficult conditions in the European automotive industry.
Audi has said US tariffs on automobiles, steel, aluminum and parts cost the company around €1.2 billion, or approximately $1.4 billion, last year. The company currently imports all vehicles sold in the US market from Europe or Mexico.
Critics of the tariffs argue that they have raised vehicle prices for American consumers and caused automakers to delay some investment decisions.
In Germany, the measures have added to tensions between Volkswagen’s management and workers, with potential job cuts and plant closures already a concern.
The proposed Georgia factory has therefore raised questions about how Volkswagen can expand its US operations while protecting employment and production in Germany.
German Union Seeks Guarantees for Domestic Workers
The announcement has drawn criticism from IG Metall, Germany’s powerful industrial union. A spokesperson said Döllner’s appearance alongside Trump during the election campaign was “hard to understand.”
The spokesperson argued that Trump’s policies were putting pressure on Germany’s domestic economy, particularly its automotive sector.
Christiane Benner, head of IG Metall and Volkswagen’s deputy supervisory board chair, took a more qualified position. She said improving Volkswagen’s position in the US market through a new plant was “right and necessary,” but stressed that workers at all company sites needed clear assurances.
Her comments reflect the challenge facing Volkswagen as it considers expanding production in the United States while managing employment and manufacturing commitments at home.
Lower Saxony Says US Growth Must Benefit German Workers
Olaf Lies, premier of Lower Saxony, Volkswagen’s second-largest shareholder, said additional production in the United States could create opportunities if German workers also benefited.
“Growth in America must secure jobs and value creation here and must not displace them,” Lies said.
His comments underline a central concern for Volkswagen’s German stakeholders: whether a larger US manufacturing presence will support the group’s overall business or shift jobs and investment away from Germany.
Volkswagen Also Plans Production in South Carolina
Alongside the proposed Audi facility in Georgia, Volkswagen plans to produce 25,000 vehicles annually in neighboring South Carolina, according to the US official cited by Reuters. Some of those vehicles, which are currently manufactured in Europe, would be exported.
Production would take place at a $2 billion plant being built by Scout Motors, Volkswagen’s off-road vehicle brand, in Blythewood, near Columbia, South Carolina.
The proposed Georgia project would add another major US manufacturing site for the Volkswagen Group, although its final approval and investment terms remain pending.
For Audi, the decision comes at a time when tariffs, production costs, and the future of manufacturing jobs are shaping discussions on both sides of the Atlantic. The company’s next step will depend on Volkswagen’s supervisory board and the final terms of the proposed investment.
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US President Donald Trump greets CEO of Audi AG Gernot Dollner at a midterm election campaign rally at Guardian Centers of Georgia in Perry, Georgia on October 24.
Photo: AFP/ KT
