200,000-SUV Georgia plant leaves Audi boss forced to defend $4 billion plan amid German union anger
A proposed Georgia investment
Trump said Audi, part of Volkswagen Group, plans to build a manufacturing facility in Georgia. A US official told Reuters the plant is expected to make Audi Q7, Q8 and Q9 SUVs, with capacity for 200,000 vehicles each year.
Volkswagen’s supervisory board has yet to grant final approval for the investment. The state has closely contested races for governor and the US Senate. Döllner said the decision followed months of planning and negotiations. He added that accepting an invitation from the US president showed respect for the office and the country where the company would invest.
Tariffs and German labor tensions
Trump has presented tariffs on imported cars as a way to boost the US economy and domestic manufacturing. In Germany, the measures have intensified pressure on European industry and strained relations between Volkswagen executives and labor representatives.
Union representatives are concerned about possible plant closures and layoffs. Critics of the tariffs argue they have also hurt the US economy by increasing vehicle prices and delaying investment plans across the auto industry. A spokesperson criticized Trump’s intentions, saying he wanted to weaken Germany’s domestic economy, particularly its automotive sector.
Terms remain undisclosed
Döllner declined to disclose the full terms of the proposed US investment agreement. He also did not confirm whether it would include tariff relief for Audi. He said growth in the United States should protect jobs and value creation there, rather than displace them elsewhere. Volkswagen CEO Oliver Blume described the region as important for profitable growth and said a potential Audi plant could support that aim.
Other Volkswagen production plans
The Audi models would be separate from vehicles planned for a $2 billion facility for Scout Motors, Volkswagen’s off-road vehicle brand. That plant is under construction in Blythewood, near South Carolina’s capital, Columbia.
Key points
- Volkswagen’s supervisory board must still approve the proposed $4 billion Georgia investment.
- A US official said the Audi facility could produce 200,000 SUVs a year.
- Döllner did not confirm whether the investment deal includes tariff relief.
- German labor representatives fear plant closures and layoffs amid tariff-related tensions.