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Tariffs, growth ambitions led to new $4 billion plant in U.S.
CNBC • • business
Key Points:
- Audi announced plans to build its first U.S. manufacturing plant in Georgia, investing $4 billion to produce SUVs including the Q7, Q8, and Q9, aiming to grow sales and reduce tariff exposure.
- CEO Gernot Dollner emphasized the decision was driven by business strategy and market potential, not as a move against Germany, where Audi’s core development and technology remain based.
- The new plant is expected to start production in the early 2030s with a capacity of up to 200,000 vehicles annually, about half of which will be exported outside the U.S.
- Audi has faced significant tariff costs on imports, paying 1.2 billion euros last year due to U.S. tariffs on European vehicles, which influenced the move toward localized production.
- The announcement was made at a Georgia rally with President Trump ahead of the midterm elections, though Dollner stated the plant decision was years in the making after evaluating over 70 locations.
