Volkswagen to Build New Audi Plant in Georgia, Giving Trump a Midterm Boost

Volkswagen is set to build a new factory for its premium Audi brand in Macon, Georgia, with President Trump expected to announce it Saturday. According to a US official involved in the talks, the plant will make the Audi Q7, Q8 and Q9 models and have room for 200,000 vehicles a year. Construction on the greenfield site is due to start soon, though building an assembly plant usually takes years, so production likely will not begin until later this decade. Audi pitched the idea in recent weeks to Commerce Secretary Howard Lutnick, who passed it on to Trump. The White House did not immediately comment, and an Audi spokeswoman declined to.

South Carolina Expansion and Possible Tariff Relief

Volkswagen will also expand its Scout Motors plant under construction in Blythewood, South Carolina, adding 25,000 units of yearly capacity for a model not yet chosen. In return, the company and the administration will keep talking about some form of tariff reprieve, which the German automaker hopes will ease tariffs that have badly cut into its profits. The official said any change would apply to every manufacturer expanding US production, not only Volkswagen. Talks center on proportional tariff relief credits for companies that make firm commitments to build more in America.

Why the Georgia Announcement Matters for the Midterms

Trump plans to promote the news Saturday night at a rally in Perry, Georgia, close to Macon, as he tries to lift Republican candidates who are trailing or tied in the polls. In Georgia, GOP Senate candidate Mike Collins is behind Democratic incumbent Jon Ossoff, while the governor’s race is essentially a tossup. Trump is campaigning to avoid broad Republican losses in next month’s midterms, with races in traditionally red states like Kansas and Texas now seen as competitive for Democrats.