Sometimes the answer to a big strategic question is just good manners. Gernot Doellner, CEO of German automaker Audi, part of the Volkswagen AG (VLKAF) (VWAGY) umbrella, defended his company's plan to expand production in the U.S., a plan that President Donald Trump announced before Audi had much chance to frame it itself.
Audi CEO Explains Why He Said Yes To Trump's Georgia SUV Plant: 'If The American President Invites You...'
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Why Audi's CEO Says You Don't Turn Down The President
Speaking to Reuters on Sunday, Doellner said the decision to build up domestic manufacturing capacity came after "careful planning and intense negotiations." Then he offered the line of the day: "if the American president invites you, you accept the invitation."
That invitation comes with a factory attached. Audi's facility in Macon, Georgia, will focus on producing up to 200,000 SUVs, and the company says it will create 4,500 jobs. Construction is set to kick off in 2027, with production beginning in the early part of the next decade.
Doellner framed the move as a sign of "respect for the office and for the country" where Audi is investing in demand. It's a diplomatic way of describing a decision that is also, plainly, a business calculation.
The German Side Of The Story
Not everyone in Germany is doing a victory lap. Christiane Benner, Volkswagen's deputy supervisory board chair and head of the IG Metall Union, called the decision "necessary" to improve Audi's position in the U.S. market, but she pushed for workers' prospects across all production sites, according to the report.
A spokesperson for IG Metall, meanwhile, said Trump had made it "clear" that he wanted to weaken the German automotive sector. That's a blunt read, but it's hard to call it unreasonable given the administration's tariff-driven approach.
Lower Saxony premier Olaf Lies added that growth in the U.S. market must not result in displacement of jobs in Germany. Lower Saxony happens to be Volkswagen's second-largest shareholder, so his opinion carries some weight.
Everyone Wants A U.S. Factory Now
The backdrop here is the Trump administration's push for automakers to expand domestic manufacturing as a way to sidestep tariffs on automobiles. Commerce Secretary Howard Lutnick has praised domestic expansions by companies like Ford Motor Co. (F) and Toyota Motor Corp. (TM), while Transportation Secretary Sean Duffy has said domestic manufacturing would result in lower prices for vehicles.
Not everyone is buying the pitch. Investor Ross Gerber, co-founder of Gerber Kawasaki Wealth Management, argued that Trump cannot be pushing for domestic manufacturing while also cracking down on immigration. It's a fair point to keep in mind as more of these plant announcements roll in.
For now, Audi has its invitation, its Georgia site, and a CEO who knows how to say yes politely.
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