PEACH COUNTY, Ga. — The planned Audi factory in middle Georgia has a federal sweetener attached, with the Trump administration promising the German luxury brand relief from the import tariffs it now pays, according to two people briefed on the talks.
Audi, part of the Volkswagen group, wants the 15% tariff on vehicles it ships in from the European Union cut in half to 7.5%. The Commerce Department was expected to settle closer to 10%. Officials also told company executives that a wider relief program is coming for automakers that make large investments in U.S. production, with details possibly released within weeks. Neither the Commerce Department nor Audi commented.
Gov. Brian Kemp and Audi chief executive Gernot Döllner announced Oct. 24 that the automaker picked the Middle Georgia Megasite for its first U.S. manufacturing plant, a roughly $4 billion project expected to create about 4,500 jobs. The state bought and improved the site in Peach County to land a major auto manufacturer, working with Peach, Houston and Macon-Bibb counties through a joint development authority.
Under the company timeline, grading starts in 2027, construction follows in 2028, and full production arrives in 2031 with capacity for 200,000 SUVs a year aimed at North American buyers. The Volkswagen supervisory board still has to sign off before the investment is final.
Tariffs are a big reason the plant matters to Audi. The company has said duties on autos, steel, aluminum and parts cost it around 1.2 billion euros, or about $1.4 billion, last year, because every Audi sold in the U.S. is now built in Europe or Mexico.
Döllner appeared with the president at a Sunday campaign rally in Georgia, where the 200,000-SUV plan was announced to the crowd.
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