German luxury carmaker Audi, part of the Volkswagen Group, will receive hundreds of millions of dollars in state tax incentives and grants in the United States for the construction of a four-billion-dollar assembly plant in the state of Georgia. Reuters reported this on Thursday, citing documents released by Georgia authorities. According to the documents, Audi is also considering a second phase of the project worth another three billion dollars.
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Audi will build its first US assembly plant. Georgia offered huge incentives and a plot of land
On October 25, the German company announced plans to build its first assembly plant in the US, near Macon, Georgia. It is expected to open after 2030. The plant is meant to produce 200,000 SUVs a year and employ 4,500 people. If the proposed second phase goes ahead, the company would hire another 3,000 employees by 2033, according to the documents. The company declined to comment on this when asked by Reuters.
The state of Georgia will provide Audi with a 1,500-acre site (more than 600 hectares), along with $458 million in tax incentives and more than $120 million in grants for infrastructure, railway improvements, remediation and the development of green sites, plus another $430 million for water, road improvements, utility issues, and workforce training and recruitment.
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A factory in exchange for lower tariffs: How the Trump administration accommodated Audi
Reuters reported last week that the administration of President Donald Trump had promised Audi tariff relief to help secure the plant’s future. US officials told Audi executives that the government plans to offer broad tariff relief to automakers that invest significantly in US production.
Two sources familiar with the matter told Reuters that Audi had been pressing the White House to cut the 15% tariffs Trump imposed on imports from the EU to 7.5%. The US Department of Commerce, however, will apparently agree to roughly ten percent. The sources added that the tariff relief program is intended to encourage automakers to expand production in the US or to make further investments. Trump’s tariffs on cars, steel, aluminum and parts cost Audi roughly 1.2 billion euros last year. The carmaker imports all of its vehicles for the American market from Europe or Mexico.
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Source: ČTK
