Audi CEO defends planned $4bn Georgia plant as German union criticises Trump link

Mixed · 2On Saturday 24 October, President Donald Trump announced at a campaign rally in Perry, near Macon in central Georgia, that German carmaker Audi plans to build its first US factory, a plant that would make 200,000 vehicles a year. 1 2 Left · 1Audi confirmed the investment in a release, saying it would create about 4,500 jobs, with construction due to begin next year and production in the early 2030s. Trump had said construction would begin "next month". 2 Mixed · 2The figure is given as $4.2 billion by AFP (carried by The Hindu) and as about $4 billion by Hindustan Times and The Independent. A US official told Reuters the plant would assemble the Q7, Q8 and Q9 SUVs, and that Audi would also build 25,000 vehicles a year at a $2 billion Scout Motors plant under construction in Blythewood, South Carolina. 3 1

Left · 1Audi CEO Gernot Doellner appeared with Trump at the rally and on Sunday defended the decision, saying it followed "many months of careful planning and intense negotiations" and that accepting the American president's invitation reflected respect for the office and the country. He declined to disclose the full terms of the deal or to say whether it includes tariff relief. 3 Left · 2Audi said the investment would make North America a third major pillar of its global production network alongside Europe and China. Volkswagen CEO Oliver Blume said a potential Audi plant in the US would create further conditions for profitable growth in the region. 2 3 Left · 1A spokesperson for Germany's IG Metall union called Doellner's appearance beside Trump during the campaign "hard to understand" and said Trump wants to weaken Germany's automotive sector. IG Metall head Christiane Benner, who is also Volkswagen's deputy supervisory board chair, said a US presence was "right and necessary" but that firm prospects for workers at all sites, especially in Germany, must be set out. 3

Left · 2Olaf Lies, premier of Lower Saxony, which holds Volkswagen's second-largest stake, said more US output is an opportunity only if German factories and employees also benefit, and that growth in America must secure jobs and value creation in Germany and not displace them. 2 3 Mixed · 2The project still needs final approval from Volkswagen's supervisory board. 3 1 Mixed · 2The announcement came 10 days before the 3 November midterm elections, with competitive Senate and governor races in Georgia. Republican Senator Bernie Moreno said the investment would not have happened without tariffs, while critics say the tariffs have raised vehicle prices and led some automakers to delay investment. 2 1

Mixed · 2Audi imports all the cars it sells in the US from Europe or Mexico, and said US tariffs cost it about €1.2 billion ($1.4 billion) last year. Its global sales fell 7% in the first half of 2026 and its US sales are down 16% this year, according to Hindustan Times, citing Reuters. 3 1 Mixed · 2The plans come as Volkswagen management and German labour representatives are in tension over job cuts and possible plant closures. Audi's Neckarsulm plant is one of four VW factories in Germany that could face closure after 2030, and a September deal with unions provides for up to 100,000 group job cuts by 2030. 1 2