Audi Plans Its First U.S. Factory After $1.4 Billion Tariff Hit

Update (October 26, 2026 at 9:00 am ET): Audi has officially confirmed its plan to open its US plant via a press release. We’ve updated this article with official information.

High Tariffs? Build Here Instead

Ever since the Trump administration increased tariffs on foreign automakers, the automotive landscape hasn’t been the same. Most brands competing in the major U.S. market have been trying to find ways to survive and stay competitive. One reason why the current government increased the tariffs was to convince more of these car makers to build their cars in the U.S. instead.

One major car brand has just called the administration’s bluff, with a major announcement concerning local American production.

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Audi to Build In America

Audi just announced that it’s set to build a $4 billion assembly and manufacturing plant in Georgia. This new facility is set to produce 200,000 SUVs annually and will also generate more vital American jobs. Moreover, the brand says that this new investment is part of a long-term strategy for profitable growth as well as showing its focus on customers’ needs.

This will mark a major milestone for the Audi brand, as it will be its first assembly facility in the U.S. According to Audi Chairman of the Board Gernot Doellner, “We have much greater ambitions for Audi in America. The United States is one of the world’s most important premium markets, and we have not yet realized our full potential. We are determined to change that — with premium products, a stronger brand and a competitive local production base. This is about building a stronger Audi business in America — not only about building a factory.”

Audi says the plant will create 4,500 new jobs, with construction set to begin next year and production expected to start in the early 2030s. A U.S. official said that the new Georgia plant will produce the Q7, Q8, and Q9 SUVs. Furthermore, Audi also has plans to build 25,000 cars per year in South Carolina. The South Carolina facility is for the Scout brand, another Volkswagen subsidiary, and will cost $2 billion.

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The Cost Of Tariffs

Just last year, Trump’s tariffs cost Audi $1.4 billion because it brings most of its vehicles to the U.S. market from Mexico or Europe. Sales also haven’t been so good in the past two years; in the first half of this year, sales slipped 7%, and 2026 sales are already down 16%. US Senator Bernie Moreno, an Ohio Republican, said that Audi’s major investment in Georgia would never have happened without tariffs or without eliminating California’s ability to regulate fuel economy standards.

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