President Donald Trump announced Saturday that Audi will invest about $4 billion in a Georgia assembly plant capable of producing up to 200,000 vehicles annually, as the automaker expands U.S. production amid higher tariffs on imported vehicles.
Trump made the announcement at a rally in Perry, ahead of the Nov. 3 midterm elections. Audi, the premium unit of Volkswagen AG (OTC: VWAGY), said the plant will create about 4,500 jobs. Construction begins next year, with production starting in the early 2030s.
Tariffs Drive the Investment
Audi CEO Gernot Doellner said the company will build its "biggest and most premium SUVs" in Macon, calling it a long-term investment in the U.S. market.
Audi currently has no U.S. assembly plant and imports vehicles sold in the American market. Last year, tariffs cost the automaker €1.2 billion, or about $1.4 billion.
Volkswagen had flagged the risk earlier. In January 2025, when the tariffs on Mexican imports were still a proposal, a company spokesperson said that Volkswagen was concerned about the harm to American consumers and the global auto industry.
Sen. Bernie Moreno (R-Ohio) in a late Saturday post on X, said the Georgia plant "would never have happened without tariffs."
Audi's global sales fell 7% in the first half of 2026, while its U.S. sales declined 16% this year.
The pressure has also affected its parent company, Volkswagen. In an early October commentary, Kinzey Capital Management said Volkswagen lowered its full-year operating return on sales forecast to no more than 1%, down from its earlier forecast of 4% to 5.5%.
The push to expand U.S. operations extends beyond Audi. Toyota Motor Corp. (NYSE: TM) said in July that it would invest $3.6 billion in a truck production line in Texas. Honda Motor Co. (NYSE: HMC) may build a plant in the U.S. only if the United States-Mexico-Canada Agreement (USMCA) is extended.
Trading Metrics
VWAGY has a market capitalization of $37.97 billion, a 52-week high of $12.83 and a 52-week low of $7.38.
The large-cap automotive stock has declined 26.61% over the past 12 months.
