US President Donald Trump announced that Volkswagen subsidiary Audi plans to construct a $4 billion assembly plant in Macon, Georgia, designed to produce 200,000 sport utility vehicles annually, according to reporting by U.S. News & World Report. The announcement was made during a political rally in Perry, Georgia, as part of an effort to rally voter support for Republicans ahead of the November 3 midterm elections.
Audi Commits $4 Billion to First US Assembly Plant in Georgia
The facility marks Audi’s first manufacturing plant in the United States and is projected to generate approximately 4,500 jobs. Construction on the project is scheduled to begin next year, with vehicle production anticipated to commence in the early 2030s. The plant is slated to assemble the automaker’s Q7, Q8, and Q9 SUVs.
Tariffs, Market Pressures, and Broader Industry Shifts
Audi has faced broader market challenges, reporting sales declines for two consecutive years, a 7% drop in the first half of 2026, and a 16% decrease in US sales this year amid competitive pressures in China and trade tariffs. Meanwhile, four German Volkswagen plants, including the facility in Neckarsulm in southwest Germany, face potential closure after 2030.
Additional Production and Competitor Investments
In addition to the central Georgia facility, Audi plans to produce 25,000 vehicles annually in South Carolina at a $2 billion plant operated by Volkswagen’s off-road brand, Scout Motors, which is currently under construction in Blythewood near Columbia. Some of those vehicles are intended for export.
The announcement arrives amid broader adjustments across the automotive sector:
- Toyota announced a $3.6 billion expansion of its San Antonio, Texas, manufacturing campus to construct a truck assembly line by 2030, creating 2,000 jobs.
- Honda Motor warned it may forgo building a US assembly plant unless the United States-Mexico-Canada Agreement is extended.
- Hyundai previously stated that certainty regarding the USMCA trade pact would unlock more than $20 billion in investments.
At the same time, reductions in government incentives for electric vehicles have led to a decrease in domestic EV and battery production, and overall US vehicle and parts employment has declined since Trump took office.
