Gasgoo Munich-Audi, Volkswagen Group' s luxury marque, is set to secure hundreds of millions of dollars in tax breaks and subsidies in Georgia to build a $4 billion assembly plant, according to foreign media reports. Documents released by local authorities indicate the automaker is also considering a second phase of construction.
Image Credit: Audi
On October 25, Audi announced plans to construct its first U.S. assembly plant near Macon, Georgia. Slated to start production in the early 2030s, the facility will have an annual capacity of 200,000 SUVs and create 4,500 jobs.
Documents from the Mid-Georgia Gateway Development Authority reveal Audi is evaluating a second phase for the factory, which would involve an additional $3 billion investment and 3,000 new jobs by 2033. Audi declined to comment on the report.
The state of Georgia is reportedly offering Audi a roughly 1,500-acre site, along with $458 million in tax incentives and more than $120 million in grants for infrastructure, rail upgrades, environmental remediation, and plant construction. On top of that, the state will provide $430 million for water access, road improvements, utilities, and workforce training and recruitment.
Reuters previously reported that the Trump administration has promised tariff relief to Audi to help secure the U.S. factory project. American officials told Audi executives that the government plans to offer broad tariff exemptions to automakers making significant production investments in the country.
Two people familiar with the matter said Audi has been pushing to cut tariffs on vehicles imported from the EU from 15% to 7.5%, though the U.S. Commerce Department is expected to ultimately agree to a rate of around 10%.
The sources added that the tariff relief package is designed to encourage automakers to boost domestic production capacity or make other investments in the U.S.
Since Audi currently sells all its U.S. vehicles imported from Europe or Mexico, tariffs imposed by the Trump administration on imported cars, steel, aluminum, and parts cost the automaker roughly 1.2 billion euros ($1.4 billion) last year.
