Audi to invest $4bn in Georgia factory for three SUV models
Audi plans to spend $4bn on its first US factory, producing the Q7, Q8 and Q9 SUVs. The plant in Macon, Georgia, is expected to build 200,000 vehicles and create 4,500 jobs.
Image: theguardian.com · Author: https://www.theguardian.com/profile/jasper-jolly · source articleEditorial excerpt for news reporting
Audi plans to invest $4bn in its first US factory, to be built in Macon, Georgia. The plant will make the brand’s large SUVs.
The company aims to produce 200,000 vehicles at the site and create 4,500 jobs. Production is planned for the Q7, Q8 and Q9.
Audi chief executive Gernot Döllner and US President Donald Trump announced the project at a campaign rally on Saturday night. Döllner said he accepted the invitation to speak out of respect for the US and described the investment as a long-term commitment to the American market.
Production shifts and US tariffs
The Georgia plant is expected to take over some production currently based in Bratislava, Slovakia. Audi’s parent company, Volkswagen, has said US tariffs cost it up to €5bn a year, before the effect of lower sales is included.
Audi is affected by US tariffs of 15% on imports from the EU. Volkswagen said this month it continued to face heavy pressure from import tariffs; it has also shifted some production of its lower-priced Jetta and Taos models from Mexico to the US.
Volkswagen job cuts in Germany
Volkswagen has begun cutting as many as 100,000 jobs and closing factories in Germany. It has attributed the job losses to competition from Chinese carmakers, tariffs and the investment needed for the transition to electric vehicles in markets outside the US.
Audi is counting on US demand for large petrol-powered SUVs. Volkswagen is developing the Q9 as its largest SUV, with the American market in mind.
What we know
- Audi plans to build its first US factory in Macon, Georgia.
- The plant is intended to produce 200,000 Q7, Q8 and Q9 SUVs.
- Audi expects the factory to create 4,500 jobs.
- Volkswagen says US tariffs cost it up to €5bn annually, before lower sales are factored in.
- Volkswagen has begun job cuts in Germany that could affect as many as 100,000 positions.
Trust: Single source
- The story relies on one publisher. A second independent confirmation has not been established from the cited sources.
- Sources: The Guardian Business.
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