What Volkswagen is building and where
Volkswagen AG plans a new Audi assembly facility in Macon, Georgia, with room to turn out 200,000 vehicles a year across the Q7, Q8 and Q9 lines. A US official involved in the discussions said the greenfield build is set to start soon.
The company will also boost capacity at Scout Motors' site rising in Blythewood, South Carolina, by an additional 25,000 vehicles a year for a yet-to-be-identified model, the official said. The person shared details on condition of anonymity. Over the past several weeks, Audi took the proposal to Commerce Secretary Howard Lutnick, who then conveyed it to Trump, the official added. The White House did not quickly answer a request for comment, and an Audi spokeswoman declined to comment.
Tariffs, timing and what is on the table
Trump is expected to tout the Volkswagen plan Saturday night at a rally in Perry, a short hop from Macon, as he tries to lift Republicans who are trailing or neck and neck in polls. At the same time, the administration and the automaker remain in talks over possible tariff relief that would be available to any manufacturer expanding US output, not just Volkswagen brands, according to the official. The discussions center on a framework that would grant tariff credits proportional to concrete new production commitments in the US.
Volkswagen is likewise pushing for relief because tariffs have badly eaten into profits. Building a new car plant takes years, so output from Macon is not expected until later this decade.
The political backdrop
According to polling, GOP Senate hopeful Mike Collins trails Democratic incumbent Jon Ossoff, and the governor's contest is viewed as a dead heat. Trump is barnstorming nationwide ahead of voting even as surveys put his approval near historic lows, and Republicans face the risk of a sizable loss on Nov. 3, with races in historically Republican states like Kansas and Texas now competitive for Democrats.
The state went to Trump in 2016 and 2024, but Joe Biden won it in 2020. The state has two Democratic senators viewed as potential presidential contenders. Saturday's rally and announcement are also aimed at boosting Republican Rick Jackson. Choosing Georgia could encourage both parties to support - or at least not disrupt - the project.
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How this fits Volkswagen and Audi's US strategy
Unlike BMW and Mercedes-Benz, Audi ships all of its US vehicles from Europe and Mexico, leaving it exposed to punishing tariffs. The top-selling Q5 is particularly affected because it does not meet the USMCA trade deal's requirements, and Audi's US sales fell 16% through September.
Volkswagen has weighed an additional American site on and off since 2018. CEO Oliver Blume has said the group cannot pay high tariffs and invest heavily in new capacity at the same time. He has also singled out North America as a major growth opportunity, especially in profitable SUVs and pickups where the company has had limited presence, even as it contends with softer demand in China.
To sharpen its US lineup, Audi plans to launch the Q9 this year, its largest SUV aimed at rivals like the Mercedes GLS and GM's Cadillac Escalade. Production will take place in Slovakia, so it would also fall under Trump's auto tariffs. Volkswagen already operates a Tennessee plant unionized by the United Autoworkers in 2024, and the South Carolina facility now under construction is planned to produce the Scout Terra sport-utility vehicles alongside Travelers pickup trucks. In earlier comments, Audi signaled that building some models at the Scout location was a possibility.
The bottom line: a sizable US manufacturing bet tied to potential tariff credits, arriving in a pivotal state with election tailwinds. For your portfolio, watch for formal approvals, the shape of any tariff-credit mechanism, and the build-out timeline as production edges toward later this decade.
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