Audi leaves tariff-relief question unresolved ahead of early-2030s production
Audi plans its Macon, Georgia, factory to emphasize gas-powered vehicles and plug-in hybrids. Döllner said the plug-in hybrids, which are not part of Audi’s current U.S. lineup, are part of the plan, while Audi says gas-powered vehicles have more prominence in the United States. The plant will focus on vehicles for the U.S. market and will also make cars for export globally, with expected annual output of 200,000.
Audi officials declined to say whether the company would receive tariff relief before production begins in the early 2030s. Döllner said the Macon plant would give Audi greater flexibility to navigate trade barriers such as Trump’s tariffs, which he said cut about 1.2 billion euros — $1.3 billion — from Audi’s profits last year. He also said the factory was meant to fix Audi’s broader “structural competitive problem in America.”
Audi sells thousands of luxury cars in the United States without building a single one in the country. The Macon project will give the automaker its first U.S. production site.
“The tariff situation was not the only issue,” Döllner said. Local auto production has several advantages, including lower vehicle-transportation costs and the ability to better mitigate supply chain disruptions. Döllner said a U.S. plant could also help address complications from currency fluctuations. “It’s a long-term investment for decades, and will make Audi a different company in the future,” Döllner said.
Döllner confirmed the plant will make Audi’s largest current SUVs: the Q7, Q8 and recently announced Q9. Hybrids have become more popular as gas prices have climbed. Eventually, the plant could also build other types of vehicles. “One of the main criteria in building that factory will be flexibility,” Döllner said.
Audi began searching for a plant site almost three years ago and evaluated more than 70 locations, Döllner said. Georgia was selected for reasons including energy supplies and proximity to Volkswagen’s supply-chain network across the South. Audi considered integrating production with Volkswagen’s plant in Chattanooga, Tennessee, and the planned Scout Motors plant in Blythewood, South Carolina, but ultimately chose a new site that best suited its long-term goals.
Döllner said “this is not a decision against Germany” and that the project will not come at the expense of any German production. Volkswagen is seeking to cut 100,000 jobs and potentially close plants in Europe.
Volkswagen is scaling back its global electric-vehicle plans. While its electric vehicles have taken off in several markets, adoption has been slower in the United States, leading Volkswagen to cancel or delay several battery-powered models.
German rivals BMW and Mercedes-Benz, as well as Audi’s parent Volkswagen, have produced cars in the South for decades. Automakers that commit to U.S. production typically prioritize full-size SUVs, trucks and premium vehicles, which tend to be more profitable. Higher U.S. labor costs make smaller, budget-oriented vehicles far less profitable to build.
Vito Paladino, president of Audi of America, said the company had been working to finalize its plans on its own timeline before the White House invited it to announce the project at the Trump rally. “We were invited by the president of the United States. Of course, that’s an invitation that we respect,” he said.
The announcement came Saturday evening when Döllner joined President Trump on stage at a midterms rally in Georgia. The $4 billion Macon project is Audi’s first U.S. factory and is expected to create around 4,500 jobs.