Audi Eyes US Expansion: First Georgia Factory Planned to Combat Market Losses
Economy / Finance

Audi Eyes US Expansion: First Georgia Factory Planned to Combat Market Losses

Audi, the struggling Volkswagen subsidiary, is reportedly in advanced planning stages for its first wholly owned production plant in the United States. According to the “Handelsblatt”, which cites sources within the corporation and management circles, Audi may establish a vehicle manufacturing operation in the state of Georgia. Earlier this week, Audi CEO Gernot Döllner traveled to Washington alongside Chairman of the Supervisory Board, Manfred Döss. Details regarding the outcomes of these meetings remain unavailable, and no decisions have been finalized regarding Audi’s potential involvement in the US market. The newspaper noted that Audi has declined to comment, and supervisory board sources confirmed that neither Audi nor the VW Group has reached a resolution on this matter yet.

The “Handelsblatt” adds that the planned US factory lies within a two-phase strategy. In addition to the Georgia site, a “quick action” is planned to address Audi’s current issues in the US. This immediate measure involves manufacturing Audi models at the Scout plant in South Carolina, using the Scout brand. This facility in Blythewood is nearing completion. Volkswagen acquired the traditional US brand Scout in 2021, aiming to sell pickups and SUVs specifically developed for the US market under that name.

Audi has been incurring billions in losses in the US since Donald Trump imposed import tariffs. Last year, the deficit exceeded one billion euros, and high-ranking executives predict a loss of approximately 800 million euros this year.