Audi May Add $3 Billion to Its U.S. Plant Before it Even Breaks Ground

Decades in the Making

Among the German luxury big three, only Audi doesn’t have a production facility in the U.S. While it looks like a sudden decision, the plans to build in America has been decades in the making. There’s now an even greater urgency to set up a production hub stateside, as Audi is taking a beating from tariff payments, further compounded by lower sales.

The new Audi production line will be built in Peach County, Georgia. At the moment, it hasn’t broken ground yet, and site grading will begin in 2027. Construction will begin in 2028, and the company aims to complete the facility by the early 2030 and hit the ground running with the vehicle rollout. There’s a lot of catching up to do, and delays are not an option.

Expansion Talks Already

Audi’s production base in Georgia represents a $4 billion investment, and it aims to produce about 200,000 vehicles annually once operations are fully in swing. Once completed, the side will measure 4,500 acres and provide up to 4,500 jobs in the process. The state also promised the German automaker $458 million in tax incentives, along with over $120 million that will see improvements in rail and infrastructure, plus environmental site remediation and construction. Topping it all of is another $430 million water and utilities, road improvements, training, and recruitment.

But even before the site has broken ground, Automotive News reports that there are already talks of expansion. If so, it shows that Audi is determined to get up to speed immediately. The report stated that the company will invest another $3 billion into the facility, adding another 3,000 jobs in the site. The so-called second phase will begin in 2033, per the Mid-Georgia Gateway Development Authority.

When Automotive News asked Audi about the matter, the company declined to comment. But while there is no confimation of the pla, neither is there a denial. Should the second phase push through, the Audi alone could add 7,500 jobs for the state, or maybe even more. Either way, Audi is serious in its investment as it needs to lean more into the U.S market given cratering sales in China.

Better Late than Never

BMW planted seeds in America for production as early as 1992, while Mercedes-Benz announced its plans in 1993. It was BMW that became the first German luxury automaker to complete the construction of the assembly plant. Located in Spartanburg, South Carolina, it was completed in 1994 with production beginning almost immediately. Mercedes-Benz followed suit in 1996 with the completion of its American plant in Tuscaloosa, Alabama, and production started in 1997.

It has taken Audi over 30 years to respond to its rivals. If anything, its tariff troubles could’ve been lessened had plans for the U.S facility actually pushed through in the late 2000s. Then Audi of America president Johan de Nysschen, along with other regional heads, pushed for it, but their bosses from Ingolstadt ultimately decided on Mexico.

Still, it’s better late than never for Audi. The U.S-market Q7 and Q9 are currently sourced from Slovakia, but will be built in Georgia once construction is completed. If Audi and the entire Volkswagen Group want a return on its investment in America, it could to turn the U.S plant into a major global production hub for its SUVs.