Another three billion dollars: Audi is considering expanding its planned US factory

Audi wants to build an SUV factory in the US state of Georgia for four billion dollars. Plans now show that the car manufacturer has even bigger plans and wants to spend another three billion dollars on them. To this end, tariffs should also be reduced for EU imports.

The Volkswagen subsidiary Audi is considering a billion-dollar expansion of its planned first US plant in the US state of Georgia. The car manufacturer is considering a second construction phase, according to documents from a local economic development authority. 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.

In Georgia, around 4,500 employees are expected to produce 200,000 SUVs annually from the beginning of the 2030s. 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.

Audi offers cheaper tariffs

As the Reuters news agency reported last week, the US government under President Donald Trump has 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.