American tariffs cost Audi approximately €1.2 billion in 2025. Now the German automaker plans to open its first own plant in the USA worth about $4 billion. The facility in Georgia will be able to produce up to 200,000 vehicles annually.

The project was announced on October 24, 2026, and the next day Audi officially confirmed the plans. The company expects to increase sales in the American market and be less dependent on trade restrictions.

However, there is an important caveat: construction still needs to receive final approval from the governing bodies of the Volkswagen Group, of which Audi is a part.

Why Audi decided to open a plant in the USA for the first time

Until now, Audi did not have its own automobile production in the United States. Cars for American buyers were supplied from plants in Europe and Mexico.

After the increase in import tariffs, this scheme became significantly more expensive. According to Reuters, in 2025 alone Audi's additional expenses due to American tariffs reached €1.2 billion.

An own plant will allow the production of vehicles directly in the USA, reduce import costs, and diminish the impact of currency fluctuations.

However, it's not only about tariffs. America remains one of the largest markets for premium cars, and Audi's management believes the brand is not yet utilizing all opportunities for sales growth.

Company CEO Gernot Döllner emphasized that it's not just about building a plant, but about creating a stronger Audi business in America.

$4 billion and 4,500 jobs: what the new plant will be like

For the facility, the Middle Georgia Megasite in central Georgia was selected. Premium SUVs aimed at American buyers are planned to be produced there.

The stated production capacity is up to 200,000 vehicles per year. Investments are estimated at about $4 billion, and the number of new jobs at 4,500.

According to a message from the Georgia administration, site preparation should begin in 2027, plant construction in 2028. Full capacity output is expected in 2031.

Thus, the first vehicles from the new facility will not appear before the beginning of the next decade.

Will Audi relocate production from Germany?

Large-scale investments in the USA do not mean that Audi plans to close German plants.

The company emphasizes that Germany and Europe will remain the foundation of its production network. The American facility should complement existing capacities, not replace them.

In the future, North America may become Audi's third major production center alongside Europe and China.

However, the project has not been finally approved yet. In the official statement by Volkswagen Group dated October 25, it is said that the decision on construction must be approved by the relevant corporate bodies.

Audi's history shows how trade restrictions change the plans of global automakers: instead of supplying finished cars from abroad, companies increasingly consider production directly in the markets of sale.

For Audi, this is an opportunity to strengthen its position in the USA and reduce costs associated with imports. But before the plant begins construction, the group has to finally approve multibillion-dollar investments.

Sources: Audi, October 25, 2026; Volkswagen Group; Georgia state administration; Reuters.