Bavaria’s Economics Minister, Hubert Aiwanger of the Free Voters, has defended Audi’s decision to invest billions in a United States facility, even as job losses occur within Germany. Speaking to television broadcaster “Welt,” Aiwanger argued that Audi is simply following a similar successful strategy already employed by BMW: producing in markets where they plan to sell. He added that the move is unavoidable, especially given the increasing import tariffs being implemented in the US.
While stressing the importance of stabilizing the major automotive corporations in Germany, the minister acknowledged that this decision was unfortunately unavoidable. He stated his wish that German and Bavarian plants would be strengthened, but claimed that this depends on federal and European policies first improving the necessary framework conditions.
To ensure jobs remain secured in Germany, Aiwanger insisted that current shortcomings must be addressed. He called for immediate reforms in energy prices, tax structures, and regulations, warning that without these changes, the displacement of jobs will accelerate. Specifically, he demanded that corporate taxes be limited to a maximum of 25 percent, the carbon dioxide pricing mechanism be abolished, and the ban on internal combustion engines be lifted. He also called for greater labor flexibility and significantly cheaper energy prices, stating that Germany currently lacks international competitiveness.
Aiwanger also argued that foreign investments often contribute to securing jobs in Germany, as profits generated internationally often subsidize domestic operations. He explained that this isn’t restricted to Audi; he mentioned that even small and medium-sized enterprises (Mittelständler) often invest in places like Eastern Europe or the Czech Republic to balance their books and produce at lower costs, thereby enabling them to subsidize their main factories in expensive Germany. He expressed skepticism about whether VW and Audi could thrive in the long term without making the US investment, concluding that the move was compelled by the current global political situation.
Finally, Aiwanger dismissed the public criticism surrounding the joint appearance of Audi CEO Gernot Döllner and US President Donald Trump, calling it exaggerated. The Bavarian minister remarked that such criticism is not unique to the US; he noted that whenever new factories are planned in Germany, local politicians tend to make public statements. He suggested that questioning whether the appearance was “necessary” is common, even amid criticism, but firmly asserted that the meeting was certainly not planned for frivolity.
