Audi apparently wants to expand the planned US plant in Georgia

The Volkswagen subsidiary Audi is considering expanding the plans for the plant to be built in the US state of Georgia. The car manufacturer is considering a second construction phase, according to documents from a local economic development authority on Thursday (local time). This would cost another three billion dollars and create an additional 3,000 jobs by 2033.

Audi declined to comment on the plans. The German car manufacturer announced on October 25 that it would build the $4 billion factory near the city of Macon. Meanwhile in Germany, the Audi plant in Neckarsulm may face closure after 2030.

In Georgia, around 4,500 employees will produce 200,000 SUVs annually from the early 1930s. The company will receive hundreds of millions of dollars in tax breaks and grants from the state for the new factory.

Specifically, Georgia gives the car manufacturer the approximately 600 hectare property and grants tax relief of $458 million. There is also more than $550 million in additional funding, including for infrastructure, construction work, water supply and the training of skilled workers.

The US government under President Donald Trump is said to have promised Audi customs relief in order to secure the investment. US representatives promised company executives extensive relief for car manufacturers that invest heavily in US production.

Two people familiar with the matter said Audi had pushed to reduce tariffs on imports from the European Union (EU) from 15 percent to 7.5 percent. The US Department of Commerce is expected to agree to a rate of around ten percent.

The program aims to encourage car manufacturers to produce more in the USA. Last year, US tariffs on cars, steel, aluminum and components cost Audi around 1.2 billion euros. To date, the VW subsidiary has imported all vehicles for the US market from Europe or Mexico.

Trump announced the construction of the plant at the end of October at a campaign event in Georgia, where Audi boss Gernot Döllner also came on stage. The appearance was met with sharp criticism from employee representatives and politicians in Germany.