Audi is reportedly mulling launching a Phase 2 to its recently announced plan to set up an assembly plant in the U.S. Volkswagen's luxury brand is looking at a $3-billion expansion to its planned assembly facility near Macon, Georgia, potentially bringing total investment in the site to $7 billion and creating up to 7,500 jobs in all.
Recall that on October 25th, Audi announced plans to establish its first U.S. assembly plant. Slated to open in the early 2030s, the facility will employ 4,500 workers and produce 200,000 SUVs annually; it will come about via a $4 billion investment by the automaker.
The newly disclosed second phase would add $3 billion in capital expenditure and 3,000 workers by 2033. Audi has declined to comment on the expansion plans.
To secure the project, Georgia is providing the 1,500-acre site along with a substantial incentive package, comprising $458 million in state tax incentives, over $120 million in grants for infrastructure, rail links and environmental remediation, plus an additional $430 million dedicated to utilities, road improvements and workforce training.
The elaboration of Audi's plan to produce vehicles in the U.S. comes amidst active discussions with federal officials regarding trade policies. The U.S. government plans to offer broad tariff relief to automakers making significant investments in domestic production.
Up to now, Audi has imported all of its U.S.-market vehicles from Europe or Mexico. That cost it around $1.4 billion USD in auto, steel and aluminum tariffs last year. Sources state that the Commerce Department is expected to reduce Audi’s EU import tariffs from 15 percent down to around 10 percent.