By TheWorldNews7 News Desk
Audi Chief Executive Gernot Doellner has defended a proposed $4 billion investment in a new manufacturing facility in Georgia, USA, amid backlash from German labor unions. The announcement follows a campaign event in Perry, Georgia, where Doellner appeared alongside Donald Trump.
Strategic Expansion Amid Trade Tensions
The proposed plant is intended to produce approximately 200,000 SUVs annually, including the Audi Q7, Q8, and Q9 models. Doellner noted that the decision resulted from months of planning and negotiations, stating that accepting the invitation to appear with the American president was a matter of respect for the office and the country of investment.
The project is expected to create around 4,500 jobs, with construction slated to begin next year and production anticipated to start in the early 2030s. Additionally, Audi reportedly intends to manufacture 25,000 vehicles annually at a $2 billion Scout Motors facility in South Carolina, which is currently under construction.
Internal Pressure and Union Concerns
While Volkswagen Group CEO Oliver Blume views the U.S. expansion as a condition for profitable growth in a key market, the move has sparked criticism in Germany. The IG Metall union expressed confusion over Doellner's appearance with Trump, arguing that his trade policies aim to weaken the German automotive sector.
Christiane Benner, head of IG Metall and deputy supervisory board chair at Volkswagen, stated that while a U.S. footprint is necessary for competitiveness, the company must clearly define and protect prospects for workers at German sites. Similarly, Olaf Lies, the premier of Lower Saxony, emphasized that American growth must not displace German jobs and value creation.
Economic Impact of Tariffs
The investment comes as Audi grapples with the financial impact of trade tariffs on automobiles, steel, and aluminum. The company previously reported that these tariffs cost the business approximately €1.2 billion ($1.4 billion) over the past year, as its current U.S. sales rely on imports from Mexico and Europe.
Before the investment can proceed, the Volkswagen supervisory board must grant final approval. The move is seen by some as a response to trade policies that aim to encourage domestic manufacturing in the United States, though critics argue such tariffs also raise consumer prices and delay industry investments.
