Trump promotes the "manufacturing card" again for midterm elections: Audi to invest $4 billion in a U.S. plant, plans annual production of 200,000 SUVs

According to information from Zhihui Finance APP, Gernot Döllner, CEO of German automaker Audi, on Sunday defended the company’s $4 billion investment planned for a new factory in the United States. This investment was announced by U.S. President Trump as part of his campaign efforts ahead of the November midterm elections.

On Saturday, Döllner appeared alongside Trump at a rally near Perry, in central Georgia. Trump stated that Audi, a subsidiary of Volkswagen Group, plans to build a new assembly plant in Georgia with an annual production capacity of 200,000 SUVs.

Döllner told reporters on Sunday: "This decision followed months of careful planning and intense negotiations. If the U.S. President extends you an invitation, you should accept it. It is a requirement of respect for the office of the President, as well as for the country in which we are investing."

Whether this investment will move forward is ultimately up to Volkswagen's supervisory board to decide.

The races for U.S. Senate and Governor in Georgia are fiercely contested, and Trump is eager to demonstrate that his auto tariffs are helping the U.S. economy and boosting American manufacturing.

In Germany, these tariffs have increased the pressures faced by European industry and deepened tensions between Volkswagen management and workers, who face layoffs and possible plant closures.

Audi said that tariffs imposed by Trump on automobiles, steel, aluminum, and parts cost Audi about 1.2 billion euros ($1.4 billion) last year, because all vehicles Audi sells in the United States are imported from Europe or Mexico.

Critics of the tariffs say they are also causing harm within the U.S.—raising car prices and delaying some automakers’ investments.

A spokesperson for German union IG Metall said Döllner’s decision to show support for Trump during the election campaign was "perplexing."

The spokesperson said: "Trump has never hidden his intentions: he wants to weaken our domestic economy, especially the automotive sector."

IG Metall union chair and Volkswagen deputy supervisory board chair Christiana Benner said that expanding the company’s presence in the U.S. market by building a new plant was "right and necessary." "However, the secure prospects for all plant workers, especially those in Germany, must be clearly defined and explained."

Döllner refused to disclose all the details of the investment agreement with the U.S., including whether it involves any tariff reductions for the company.

Can German workers benefit?

Lower Saxony Governor Olaf Lies, Germany’s second-largest Volkswagen shareholder, said that expanding production in the U.S. is an opportunity—as long as German workers can also benefit.

He said: "Growth in the U.S. must guarantee employment and value creation here (in Germany), not replace them."

Audi said the investment would create about 4,500 jobs. Audi stated the plant is scheduled to begin construction next year and start production in the early 2030s.

A U.S. official told the media the plant is expected to assemble three Audi SUVs: the Q7, Q8, and Q9.

The official said Audi also plans to produce 25,000 cars a year in neighboring South Carolina. He added that some vehicles currently produced in Europe will be destined for export.

The official noted that these vehicles will be assembled at a $2 billion plant under construction by Volkswagen’s off-road brand Scout Motors, located near Blythewood, outside Columbia, the state capital.

Volkswagen CEO Oliver Blume stated: "We view the region as a key market for profitable growth. If Audi builds a factory in the U.S., it will create further conditions for this."