Volkswagen to build $4bn Audi SUV factory in US despite job cuts at home
Audi will spend $4 billion to build its first US factory in Macon, Georgia, creating 4,500 jobs for SUV production, despite parent company Volkswagen cutting up to 100,000 jobs in Germany.
Audi's chief executive Gernot Döllner joined Trump on stage at a campaign rally to announce the factory, an unusual move by a major European brand just before US midterm elections. The German brand aims to build 200,000 SUVs at the new facility, shifting some production from Bratislava in Slovakia.
Tariff Impact
Volkswagen has said Trump's tariffs cost it up to €5 billion a year, before accounting for lower sales. The company has blamed job cuts in Germany on intense competition from Chinese carmakers, the tariffs, and heavy investment needed for electric vehicles outside the US market.
US tariffs create a significant burden and restrict international trade
Market Strategy
The new factory will produce the Q7, Q8 and Q9 SUVs, with Audi planning its largest-ever SUV specifically for the American market. Despite Trump's efforts to promote petrol cars over electric vehicles, Audi has suffered from the 15% tariffs on EU imports and the administration's stance against battery electric vehicles.
Döllner emphasized the long-term nature of the investment, stating Audi's belief in the American market. The announcement comes as Trump's Republican party faces polling challenges related to higher fuel prices from his war on Iran and trade disputes with key partners.
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