Audi sells thousands of luxury cars in the U.S. without building a single one here. That is about to change.
On Saturday evening, Audi Chief Executive Gernot Döllner joined President Trump on stage at a midterms rally in Georgia to announce Audi's first-ever U.S. factory. The $4 billion project in Macon, Ga., is expected to create around 4,500 jobs.
Here's what Döllner had to say about Audi's American plans in an interview Sunday.
1. It isn't just about tariffs
The plant will give Audi greater flexibility to navigate trade barriers like Trump's tariffs, which clipped about 1.2 billion euros -- or, $1.3 billion -- from its profits last year. But Döllner said the new factory is also meant to fix Audi's broader "structural competitive problem in America."
"The tariff situation was not the only issue," he said.
Local auto production has several advantages, including lower vehicle-transportation costs and the ability to better mitigate supply chain disruptions. Döllner said a plant in the U.S. 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.
Audi officials declined to comment on whether the company would get tariff relief before the plant begins production in the early 2030s.
German rivals BMW and Mercedes-Benz, as well as Audi's corporate cousin Volkswagen, have produced cars in the South for decades.
2. The plant will make SUVs aimed at American buyers
Döllner confirmed that the plant will make Audi's largest current SUVs: the Q7, Q8 and recently announced Q9.
When automakers commit to U.S. production, they typically prioritize full-size SUVs, trucks, and premium vehicles that tend to be more profitable. Higher labor costs in the U.S. make smaller, budget-oriented vehicles far less profitable to build.
The Georgia plant will focus on vehicles for the U.S. market, but will also make cars for export globally. It is expected to produce 200,000 cars annually.
3. Gas-powered vehicles will be a focus, along with hybrids
Audi's parent company, Volkswagen, is retrenching from its aggressive global electric-vehicle plans. While its EVs have taken off in several markets, adoption has been slower in the U.S., leading the company to cancel or delay several battery-powered models.
Audi's Macon plant will emphasize gas-powered vehicles, which the company says have more prominence in the U.S. Plug-in hybrids, which aren't part of Audi's current U.S. lineup, are also part of the plan, Döllner said.
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.
4. Dozens of other U.S. locations were considered
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.
The company considered integrating production with Volkswagen's plant in Chattanooga, Tenn., as well as the planned Scout Motors plant in Blythewood, S.C. But it ultimately decided a new site best suited its long-term goals.
Döllner was careful to note that "this is not a decision against Germany," and won't come at the expense of any German production. The Volkswagen group faces a massive labor and restructuring crisis in its home country as it seeks to cut 100,000 jobs and potentially close plants in Europe.
5. Audi was invited to announce the factory at Trump's rally
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.
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