Audi will invest $4 billion to build its first manufacturing plant in the United States as its parent company, Volkswagen Group, seeks to mitigate the impact of higher tariffs on its sales and profitability. The announcement was made by Audi chief executive Gernot Döllner alongside then-US President Donald Trump at a rally in Georgia.
The new facility, expected to be operational in the early 2030s, will be located in Georgia and aims to produce up to 200,000 vehicles annually. The project is projected to create approximately 4,500 jobs, reflecting Audi’s long-term commitment to the American market, according to Döllner.
President Trump highlighted the investment as a vindication of his administration’s imposition of a 15 percent tariff on many European Union goods, including automobiles. He argued that these tariffs, a central element of his trade policy, helped reverse a significant decline in Volkswagen’s US auto business. Trump claimed that 58 percent of the company’s US auto business had disappeared prior to the tariffs but that it was now recovering, asserting that Audi’s investment would not have materialized without these trade measures.
However, the tariffs remain controversial. While they have led to increased domestic investment by foreign automakers such as Hyundai and Stellantis, some Republican lawmakers have faced criticism for supporting the levies amid broader concerns about rising prices affecting consumers during tight midterm election contests.
The investment announcement follows over a year of negotiations between Volkswagen Group and the Trump administration. Volkswagen Group chief executive Oliver Blume has emphasized the company’s intention to make substantial investments in the US as part of its strategy to secure a potential agreement that would reduce car tariffs below the current 15 percent level. Blume previously indicated the possibility of localizing Audi production and increasing US-based exports.
Blume described North America as "an important market for profitable growth" and observed that the success of the Volkswagen Group in growth markets like North America benefits the entire company, which includes premium brands such as Audi, Bentley, and Lamborghini.
The Volkswagen Group has been adversely affected by the tariffs, experiencing a 7 percent decline in deliveries of its three US-focused brands in the first half of 2026 compared to the previous year. This challenge comes amid a broader restructuring plan by the European automaker, which includes cutting up to 100,000 jobs globally to adapt to shifting market conditions and improve efficiency.