On the Dash:
- Audi plans to invest $4 billion in an assembly plant near Macon, Georgia, designed to produce 200,000 SUVs annually and employ 4,500 workers.
- The automaker is considering a second phase that would require another $3 billion investment and add 3,000 jobs by 2033.
- Georgia is providing the 1,500-acre site, $458 million in tax incentives and more than $550 million in grants and additional infrastructure support.
On October 25, Audi announced that it plans to build its first U.S. assembly plant near Macon, Georgia. The initial project, estimated at $4 billion, is expected to:
- Open in the early 2030s
- Produce 200,000 SUVs annually
- Employ approximately 4,500 workers
But on Nov. 5, Reuters reported that documents released by the Mid-Georgia Gateway Development Authority show Audi is considering a second phase for its planned assembly plant, which would cost another $3 billion and add 3,000 workers by 2033.
In support of this project, Georgia is offering more than $1 billion in incentives and infrastructure support, including:
- A 1,500-acre site for the plant
- $458 million in tax incentives
- Over $120 million in grants for infrastructure, rail improvements, environmental remediation, and workforce training and recruitment
- Another $430 million for water, road improvements, and utility-related needs
Additionally, potential tariff relief enhances the significance of the automaker’s investment. Reuters previously reported that the Trump administration had promised tariff relief to Audi to help secure the Georgia plant. U.S. officials reportedly informed Audi executives that the government planned broad tariff relief for automakers making substantial investments in U.S. production. According to two sources briefed on the matter, the automaker pushed the U.S. to reduce the 15% tariff on imports from the European Union to 7.5%, but the Commerce Department was expected to agree to about 10%. The sources said the program aims to prod automakers to add U.S. production or other investments.
Currently, tariffs have added costs to Audi’s U.S. operations, as the automaker imports all vehicles sold in the U.S. from Europe or Mexico. Tariffs on automobiles, steel, aluminum, and parts cost Audi approximately €1.2 billion (or $1.4 billion) last year, so establishing a manufacturing operation in Georgia would mark Audi’s first vehicle assembly plant in the United States.