Audi as a Trump Ally? Audi Plans to Build a Plant in the U.S. and Faces Criticism from the SPD

Audi plans to build a plant in the state of Georgia for four billion dollars (3.6 billion euros) so it can begin production in the U.S. for the first time ...

Volkswagen subsidiary Audi, which is not exactly doing well at the moment, plans to produce 200,000 sport utility vehicles (SUVs) annually. This would create about 4,500 jobs in the U.S. state of Georgia. U.S. President Donald Trump made a surprise announcement of the project at a campaign rally in Perry, Georgia. Audi CEO Gernot Döllner then joined him on stage and thanked Trump for his support, as we later learned. Criticism came from the SPD, as SPD transportation expert Isabel Cademartori characterized the move as a campaign ploy for an autocrat who is known to be waging a trade war against Germany. She called this a disgrace, especially in light of the Volkswagen Group’s history. Volkswagen was founded during the Nazi era and served as a showcase company for Hitler’s regime. Audi’s principles and guidelines for political advocacy state: “Our employees also maintain neutrality in their dealings with political parties and interest groups and cultivate contact with democratic parties. To respect this principle, no public appearances with parties or politicians running for office and no sponsorship of related events will take place during the three months leading up to an election.” Construction is scheduled to begin next year, if all goes according to plan.

Audi Plant in the U.S. Also Secures German Locations

However, the construction of Audi’s new U.S. plant still needs to be approved by the Volkswagen Supervisory Board. Audi Supervisory Board Chairman Manfred Döss, however, has already expressed his support for the Executive Board’s position. According to Döss, Audi’s future will not be secured solely through cost cuts and increased efficiency, but also through a renewed willingness to invest in order to seize new opportunities and make decisions that will shape the struggling company for decades to come. This decision must be viewed against the backdrop of VW’s sales crisis and the debate over job cuts and potential plant closures in Germany. Audi has facilities in Ingolstadt and Neckarsulm, Germany. Audi also makes it clear that the planned investment in the U.S. is not a decision against Germany, but rather a step toward strengthening global competitiveness. This is because, aside from Europe and China, North America is the most important growth market. And, as BMW has long benefited from: Local production reduces risks related to tariffs, currency fluctuations, and supply chains, among other things. A stronger and more profitable Audi business in the U.S. would also help lay the groundwork for maintaining capacity utilization at the German plants. At the same time, however, every location must contribute to Audi’s competitiveness and long-term strength. Incidentally, the IG Metall union supports the plan—but only if the entire Audi organization truly stands to benefit from it.