Volkswagen to Build $4bn Audi SUV Factory in US Despite Job Cuts at Home

According to reporting by The Guardian, Audi will spend $4bn (£3bn) to build its first factory in the United States, locating the new facility in Macon, Georgia. Audi chief executive Gernot Döllner joined Donald Trump on stage at a rally on Saturday night to announce the project. Döllner stated that the investment demonstrates a belief in the American market, noting plans to produce the brand's largest and most premium SUVs at the new location.

The facility aims to produce 200,000 SUVs annually—specifically the Q7, Q8, and Q9 models—which will shift some production away from Bratislava in Slovakia. The project is expected to create 4,500 jobs in Georgia.

The investment by parent company Volkswagen comes while the manufacturer faces significant financial pressures. According to the reporting, Volkswagen has stated that Trump’s tariffs cost the company up to €5bn (£4.2bn) a year before factoring in lower sales, and the carmaker continues to struggle with high pressure from import tariffs. Audi itself has been affected by 15% tariffs on imports from the EU and efforts under the Trump administration to reduce sales of battery electric vehicles in favor of petrol cars.

While expanding in the US, Volkswagen faces mounting domestic pressures. The German manufacturer has begun cutting as many as 100,000 jobs and closing factories in Germany, driven by intense competition from Chinese carmakers, trade tariffs, and the costs of shifting to electric vehicles for markets outside the US.

Despite the global pivot toward electrification, Volkswagen and its executives highlight that ongoing demand exists in the US for large petrol-powered SUVs. Chief executive Oliver Blume previously told investors in July that US tariffs create a significant burden and restrict international trade, but the company is proceeding with the Macon facility to serve the American preference for large vehicles, including the upcoming Q9 SUV. Large petrol-powered SUVs have historically played a major role in global carbon emissions.