Audi investing $4B to build its first US plant in Georgia
Dive Brief:
- Volkswagen Group’s luxury brand Audi is investing $4 billion in Georgia to build its first U.S. factory that will create around 4,500 new jobs, the automaker announced in a press release.
- The plant will have an annual production capacity of up to 200,000 vehicles and construction is slated to begin in 2027. The first U.S.-built Audi vehicles will be produced in the early 2030s.
- “We have much greater ambitions for Audi in America,” Gernot Döllner, chairman of the board of management of Audi, said in a statement. “The United States is one of the world’s most important premium markets, and we have not yet realized our full potential. We are determined to change that — with premium products, a stronger brand and a competitive local production base.”
Dive Insight:
The Georgia assembly plant will assemble premium SUVs tailored to customers in North America. The investment in Georgia is part of Audi’s long-term strategy for profitable growth, per the release. The automaker aims for North America to become a third major pillar of its global production network, along with its existing factories in Europe and China.
“Building a new plant from the ground up allows us to rethink manufacturing from day one,” Gerd Walker, member of the board of management of Audi for Production and Logistics, said in a statement. “Our ambition is to establish a benchmark for premium manufacturing that strengthens Audi’s global production network.”
The factory will be built at the Middle Georgia Mega Site in Peach County near the city of Macon, which is roughly 150 miles southeast of Atlanta. The 1,100-acre economic development site was purchased in June 2022 in partnership between the State of Georgia and the Development Authority of Peach County. It was part of Gov. Brian P. Kemp’s plans to attract key industries to rural parts of the state and create high-quality jobs in the region.
The site is adjacent to major highways and a rail line. Audi said the site offers flexibility and space for future expansion. The automaker’s investment is also expected to create new opportunities for suppliers, service providers and training partners in the area, per the release.
“We purchased and made more improvements to the Middle Georgia Megasite for just this purpose: to bring a job-creating, high-caliber automotive manufacturer to this region, said Gov. Kemp in a statement.
The Georgia plant will be designed around Audi’s future manufacturing requirements, per the release. It will focus on efficiency, flexibility and the ability to respond to evolving customer needs and market demand in North America. The automaker said the plant will reduce its exposure to trade and currency risks, such as the 15% tariff on European auto imports to the U.S., creating a pathway towards more profitable growth.
Audi said that Germany and Europe, however, will remain as the industrial backbone of the company, with its current engineering expertise and technological capabilities. Instead, the expansion to the U.S. will complement the automaker’s existing production network and strengthen its global competitiveness, per the release.
“We need the courage to invest, to pursue new opportunities and to make decisions that will shape our company for decades to come,” Manfred Döss, chairman of the supervisory board of Audi, said in a statement. “This planned investment demonstrates our determination to do exactly that.”
Audi’s parent Volkswagen Group is also refocusing its North America operations as part of its Future Plan 2030 strategy announced in early September. The automaker plans to reduce its global model lineup by 50% and refocus its North America operations around SUVs, pickups and what it terms “rugged vehicles,” while strengthening the role of Audi as a premium SUV brand.
Volkswagen’s sole U.S. vehicle assembly plant is located in Chattanooga, Tennessee.