Audi bets $4 billion on first U.S. plant, plans to build 200,000 SUVs a year

[Financial News] German premium automaker Audi will invest $4 billion (about 5.7 trillion won) to build its first local production plant as it targets the U.S. market. The plan is to secure annual production capacity of up to 200,000 sport utility vehicles (SUVs) and create 4,500 new jobs. Audi aims to reduce trade and exchange-rate risks through local production in the United States and develop North America into its third key production hub, after Europe and China.
Audi said on the 26th that it plans to establish its first production facility in Georgia, U.S., and make premium SUVs tailored to the North American market. Construction on the new plant is set to begin in 2027, with full-scale production expected to start in the early 2030s.
The total investment is about $4 billion, and the plant is designed to produce up to 200,000 vehicles a year. The facility is expected to create about 4,500 new jobs once operational. Local parts suppliers, service companies and educational institutions are also expected to gain additional business opportunities.
The investment is seen as an important turning point in Audi’s global production strategy. Audi, which has operated a production network centered on Europe and China, plans to build a production facility directly in the United States to improve its ability to serve the North American market. The company expects local production to reduce risks from trade and exchange-rate fluctuations while helping it secure both price competitiveness and profitability.
Gernot Döllner, CEO of Audi AG, said, “The United States is one of the world’s most important premium car markets, but Audi has not yet fully realized its potential in this market. We want to change that with competitive premium products, a stronger brand and a local production base.”
He added, “This plan is not simply about building a plant; it is about further strengthening Audi’s business competitiveness in the U.S. market.”
Georgia, selected as the plant site, has an automotive-parts supply chain, logistics infrastructure and skilled workers. The “Middle Georgia Mega Site” was particularly well regarded for offering the land and flexibility needed to expand production facilities in the future.
Audi plans to design the new plant from the outset with a focus on efficiency and flexibility. Its goal is to create a production system that can respond quickly to market demand and customer needs by combining advanced manufacturing technologies with a local supply chain.
Gerd Walker, Audi AG board member responsible for production and logistics, explained, “Building a new plant from the ground up gives us an opportunity to fundamentally rethink every step of production. We can design highly efficient, flexible production processes and integrate advanced technologies while building a strong local supply chain.” He added, “Our goal is to set a new standard for premium car production that strengthens Audi’s global production network.”
Georgia Governor Brian Kemp said, “Audi’s decision to establish its first U.S. production plant in Georgia will be an important milestone. It will create new opportunities for local communities and allow us to help shape the next generation of American automotive manufacturing.”
Audi plans to diversify its global business structure by expanding production capacity in North America while maintaining its existing production hubs in Germany and Europe. Manfred Döss, chairman of the Audi AG Supervisory Board, said, “Audi’s future cannot be secured by cost reductions, efficiency gains and outstanding technological expertise alone. We need the courage to invest boldly in pursuit of new opportunities and make important decisions that will shape the company’s future for decades to come.”

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