Audi’s American Manufacturing Plans Might Get a Whole Lot Bigger

[Source: Reuters]

Audi recently announced plans to spend $4 billion to build its first vehicle manufacturing facility in the United States. That alone represented a historic investment for the German automaker. However, it turns out that Audi’s American ambitions might be even bigger than initially announced. How much bigger? Try another $3 billion and 3,000 additional jobs.

According to a November 5 report from Reuters, documents released by the Mid-Georgia Gateway Development Authority reveal that Audi is considering a second phase of construction at its planned factory near Macon, Georgia. The expansion would bring the total investment to approximately $7 billion and increase employment from 4,500 to 7,500 workers by 2033.

Original Project Details

Audi announced the original project on October 25. The factory, located on a 1,500-acre site, is expected to begin production in the early 2030s, with an annual capacity of 200,000 SUVs. Which models will roll off the assembly line remains to be seen.

Georgia is offering substantial incentives to secure Audi’s investment. According to Reuters, the state will provide $458 million in tax incentives, more than $120 million in grants for infrastructure improvements, site preparation, and related work, and another $430 million for roads, utilities, water infrastructure, and workforce development.

Tariff Savings

Of course, there’s more motivating Audi’s American manufacturing expansion than the opportunity to build vehicles closer to its customers.

Tariffs have become a significant expense for the automaker, which currently imports all its U.S.-market vehicles from Europe and Mexico. Reuters reports that tariffs on automobiles, steel, aluminum, and components cost Audi approximately $1.4 billion last year.

Additional Investment Not Confirmed

It’s important to note that the additional $3 billion investment and 3,000 jobs are not yet confirmed. Audi declined to comment to Reuters on the potential expansion.

Nevertheless, the possibility of a $7 billion manufacturing investment demonstrates just how seriously Audi is considering its future in America. After decades of importing vehicles, the four rings could soon have a much larger manufacturing presence on this side of the Atlantic.