Audi is considering a second phase of construction at its planned Georgia factory, according to a Reuters report citing documents from the Mid-Georgia Gateway Development Authority. The German automaker announced a $4 billion investment for a 1500-acre facility in Macon but may add $3 billion more by 2033 and employ an additional 3000 workers.
The expansion would follow Audi's initial commitment to produce 200,000 vehicles annually at the Georgia plant by the early 2030s. Audi plans to build Q7, Q8, and Q9 SUVs at the facility.
Audi currently imports all its U.S. models from Europe and Mexico. Reuters reported that Audi sought tariff relief from the Trump Administration as part of the decision to build its first U.S. production plant, pushing for the European Union import duty to be lowered to 7.5 percent. The U.S. Commerce Department was expected to agree to around 10 percent. EU models currently face a 15 percent tariff, and Audi paid $1.4 billion in duties to the U.S. government last year.
Georgia is offering substantial incentives to attract the factory. The state provides the land, $458 million in tax incentives, and $120 million in grants for infrastructure, rail improvements, environmental remediation, and construction. An additional $430 million in subsidies covers water, roads, utilities, workforce training, and recruitment.
Audi also plans to produce 25,000 units annually at a Scout Motors factory in South Carolina.