President Donald Trump is set to announce that Audi, a premium subsidiary of Volkswagen, will establish an assembly plant in Georgia, aimed at producing 200,000 SUVs each year. This move aligns with Trump's broader strategy to encourage automakers to shift production to the U.S. and follows his imposition of tariffs on automobiles and parts.
The plant will focus on assembling the Q7, Q8, and Q9 SUVs, with additional plans for Audi to build 25,000 vehicles in South Carolina, some of which will be exported. Despite this expansion, Audi has faced declining sales, with a 16% drop in U.S. sales this year and a 7% decrease in the first half of 2026, attributed to intense competition and the effects of tariffs.
The announcement is strategically timed amid competitive midterm elections in Georgia, as Trump aims to showcase the economic benefits of his policies. However, critics argue that the tariffs have resulted in higher vehicle prices and have negatively impacted U.S. employment in the automotive sector since Trump took office.
The situation remains fluid, with other automakers like Toyota and Honda also considering U.S. investments contingent on trade agreements