Audi has announced plans to invest approximately $4 billion in the Middle Georgia Megasite in Georgia and build its first US production facility. The US Department of Commerce is considering measures to reduce or offset tariffs on imported vehicles and parts, and a proposal has emerged to consider providing the benefit on the condition that construction of the plant in the US begins by the end of next year.
The US government is considering a program to exempt or offset tariffs on imported vehicles and parts, with automakers that commit to building plants in the US expected to qualify. The concept was presented during negotiations to attract Audi's plant to Georgia. Although the eligible companies, extent of the relief and implementation timing have not been decided, reports have emerged of a proposal under which Audi could benefit by presenting a construction plan by the end of next year.
Audi plans to build its first US plant at the Middle Georgia Megasite in central Georgia to produce premium SUVs for the North American market. The investment is expected to total approximately $4 billion, with annual production capacity of up to 200,000 vehicles and employment of approximately 4,500 people. Site preparation is scheduled to begin in 2027, with construction and production expected to proceed in stages.
Audi currently imports vehicles sold in the US from overseas production facilities, making import tariffs a cost factor. It is said to have paid more than $1 billion in tariffs on US sales last year. Domestic production is seen as potentially reducing not only the tariff burden but also transportation costs and foreign-exchange risk.
Georgia and local governments have for many years offered tax incentives, other incentives and infrastructure improvements in an effort to attract an Audi production facility. After considering more than 70 candidate sites, Audi is inspecting the area before selecting the final location.