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Audi to build $4 billion SUV plant in Georgia to grow U.S. sales and cut tariff exposure

Published Oct 25, 2026
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Summary:
  • Audi will invest $4 billion in a Georgia factory, its first U.S. plant, after President Donald Trump announced the plan at a Saturday rally near the proposed site.
  • CEO Gernot Dollner said the move targets higher American sales and lower exposure to U.S. tariffs, with the decision years in the making and more than 70 sites evaluated over many months.
  • U.S. production of the Q7, Q8 and Q9 is slated to begin in the early 2030s, targeting up to 200,000 units a year, with about 50% shipped abroad.

How the announcement came together

President Donald Trump revealed the plan during a Georgia rally close to where the Volkswagen-owned brand aims to build. Dollner joined Trump at the event, and he spoke during a media roundtable Sunday.

According to him, the Trump administration requested that Audi unveil the news at the rally promoting Republicans ahead of the Nov. 3 midterm elections. "It was … a three-year project that, at the end, by coincidence, led to that moment yesterday," he said. "With respect of the office and country, we joined the invitation."

Why Audi is localizing production now

Dollner framed the plant as a business decision to expand in a market where the company sees more room to grow. "We have significantly greater ambitions for Audi in America," he said. "We are changing that."

U.S. duties on vehicles from Germany are currently 15%, down from 25%. Audi said those tariffs cost it 1.2 billion euros (1.4 billion dollars) last year, since every vehicle it sells in the U.S. is imported from Europe or Mexico. Dollner also noted that, over this decade, the brand's sales have been hurt by higher operating expenses and tariffs imposed by Trump, which led him to conclude that building in the U.S. is the strongest option. He added the choice does not diminish Germany's role: "Germany remains the backbone of Audi." He said the company's development and technologies are centered there, and that Georgia doesn't shift work away from Germany.

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What gets built, when, and the broader backdrop

Audi plans to launch U.S. assembly of the Q7, Q8 and Q9 at the Georgia site in the early 2030s. The plan calls for as many as 200,000 vehicles per year, with approximately half shipped to markets outside the U.S. "This is to make Audi obviously a significant player here in the U.S. market," Audi of America President Vito Paladino said, adding that additional information about U.S. investments and production is on the way.

The move lands as parent Volkswagen restructures, with a blueprint to eliminate 50,000 positions and shut four German factories, including an Audi location, between 2031 and 2034. Dollner said more than 70 locations were evaluated over many months, with "intense" negotiations with public officials, and noted that, among the major German luxury brands, Audi is the last to launch U.S. production, coming after Mercedes-Benz and BMW. Through the third quarter this year, Audi's U.S. deliveries were roughly flat, following a 16% drop from 2024 to 2025.

What this means for your portfolio

In plain English: a U.S. plant shifts Audi's supply closer to American buyers, trims tariff exposure, and sets a production runway for high-ticket SUVs in the early 2030s. Watch for follow-on details about capital spending, model cadence, and export mix - all inputs for margin and cash-flow math in the next cycle.

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