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Automatically translated version. May contain inaccuracies compared to the original.
Trump persuaded Audi to invest $4,2 billion in its first factory in the USA
The German automaker plans to build a plant in Georgia, create 4500 jobs and produce up to 200 thousand cars a year. The plant is expected to reach full capacity by 2031, reports BILD.
One reason for the decision is Trump’s tariffs. Just last year they cost Audi about €1,2 billion in additional expenses. Now it is more profitable for the company to manufacture cars directly in the U.S.
At the same time, in Germany Audi plans to cut the workforce by up to 7500 jobs by the end of 2029.
Audi is not the only company that has announced major investments in the U.S. Hyundai announced investments of $26 billion, including building a steel plant in Louisiana for $5,8 billion. Stellantis has also announced an expansion of U.S. production.
But the effect on the American economy is mixed. Tariffs bring additional revenue to the budget and encourage localization of production, but at the same time they raise prices. A study by the Federal Reserve Bank of New York showed that about 26% of tariff increases are passed through to consumer prices, including via higher costs for components for American manufacturers.
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