Audi chief defends planned $4 billion Georgia plant announced by Trump

Perry, United States. Audi Chief Executive Gernot Doellner on Sunday defended a proposed $4 billion factory investment in the United States after President Donald Trump announced it during his campaign for November’s midterm elections. The project cannot proceed without a final investment decision by Volkswagen’s supervisory board.

Georgia factory proposal

Doellner appeared with Trump on Saturday at a rally in Perry, close to Macon in central Georgia. Trump said Audi, which belongs to Volkswagen Group (VOWG_p.DE), intended to establish a Georgia assembly factory with annual production of 200,000 SUVs.

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Speaking to reporters on Sunday, Doellner said the proposal followed months of detailed preparation and intensive negotiations. He said accepting an invitation from the US president reflected respect for both the presidency and the country receiving Audi’s investment.

Georgia faces competitive contests for governor and the US Senate. Trump is seeking to demonstrate that his automotive tariffs support the American economy and increase domestic manufacturing.

Tariff costs and labour concerns

In Germany, the tariffs have intensified pressure on European industry and strained relations between Volkswagen’s management and employees, who are confronting potential factory closures and job losses.

Audi has said US duties covering vehicles, steel, aluminum and parts imposed costs of approximately €1.2 billion ($1.4 billion) on the company last year. Every Audi vehicle sold in the United States is imported from either Europe or Mexico, according to the company.

Opponents of the tariffs argue that they have also hurt the United States by raising vehicle prices and causing some manufacturers to postpone investments.

A spokesperson for the German union IG Metall said Doellner’s decision to reach out to Trump during the election campaign was difficult to comprehend. The spokesperson said Trump had consistently made clear that he sought to weaken Germany’s economy, especially its automotive industry.