Gernot Doellner, CEO of German auto manufacturer Audi, part of the Volkswagen AG (OTC:VLKAF) (OTC:VWAGY) umbrella, defended its plan to expand domestic production in the U.S., which was earlier announced by President Donald Trump.
Audi CEO Defends 200,000-Unit Facility
According to a Reuters report Sunday, Doellner said that the decision to establish enhanced domestic manufacturing capability was preceded by “careful planning and intense negotiations.” He then said that “if the American president invites you, you accept the invitation.”
Audi’s facility will focus on producing up to 200,000 SUVs in Macon, Georgia, and has said that the facility will create 4,500 jobs. Audi plans to begin production in the early part of the next decade, while construction is set to kick off in 2027.
Doellner added that this was a sign of “respect for the office and for the country” where Audi was investing in demand. Volkswagen’s deputy supervisory board chair and IG Metall Union’s head, Christiane Benner, called the decision “necessary” to improve Audi’s position in the U.S. market, but pushed for workers’ prospects across all production sites, the report said.
On the other hand, a spokesperson for the IG Metall Union cited by Reuters said that Trump had made it “clear” that he wanted to weaken the German automotive sector, the report said.
Meanwhile, according to the report, Lower Saxony premier Olaf Lies said that growth in the U.S. market must not result in displacement of jobs in Germany. Lower Saxony is Volkswagen’s second-largest shareholder.
Domestic Manufacturing Push in the U.S.
The news comes as the Trump administration has pushed for automakers to expand domestic manufacturing capabilities as a way to circumvent the tariffs on automobiles.
Commerce Secretary Howard Lutnick had hailed domestic expansions of companies like Ford Motor Co. (NYSE:F) as well as Toyota Motor Corp. (NYSE:TM), while Transportation Secretary Sean Duffy had said that domestic manufacturing would result in lower prices for vehicles.
However, investor Ross Gerber, the co-founder of Gerber Kawasaki Wealth Management, said that Trump cannot be pushing for domestic manufacturing while also cracking down on immigration.
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