Audi is considering a second phase for its first car plant in the United States that would cost another $3 billion and add 3,000 jobs by 2033, according to documents released on Thursday by the Mid-Georgia Gateway Development Authority.
The documents, reported by Reuters, show the scale of the incentive package Georgia is offering the Volkswagen luxury brand: the state is giving Audi the 1,500-acre site near Macon, along with $458 million in tax incentives and more than $550 million in grants and support for infrastructure, water, roads, utilities and workforce training.
Audi announced on 25 October that it would build its first US assembly plant at the Middle Georgia Megasite in Peach County, near Macon. The $4 billion plant is due to open in the early 2030s, producing 200,000 SUVs a year and employing 4,500 workers. If the second phase goes ahead, the total investment would reach about $7 billion and total employment about 7,500.
Audi declined to comment on the possible expansion. The investment still needs a final decision from Volkswagen's supervisory board before it can go ahead.
What the documents show
The newly released documents set out, for the first time, the full value of the public support behind the project. Georgia's offer breaks down as follows:
| Support | Value | Purpose |
|---|---|---|
| Land | 1,500-acre site | Middle Georgia Megasite, near Macon |
| Tax incentives | $458 million | State tax breaks for the project |
| Grants | More than $120 million | Infrastructure, rail improvements, environmental site remediation and construction |
| Further support | $430 million | Water, road improvements, utilities, workforce training and recruitment |
Taken together, the package is worth more than $1 billion in public money and land — one of the largest incentive deals ever offered for a car plant in Georgia, a state that has been competing aggressively for auto investment.
Why Audi is building in the US
The plant is, in large part, a response to US tariffs. Audi currently imports every vehicle it sells in the US from Europe or Mexico, and tariffs on cars, steel, aluminium and parts cost the company around €1.2 billion ($1.4 billion) last year, Audi has said.
Reuters reported last week that the Trump administration has promised tariff relief to Audi to help secure the plant. US officials told Audi executives the government plans a broad relief programme for carmakers making significant investments in US production, according to two sources briefed on the talks.
Context: Audi has pushed Washington to cut the 15% tariff it pays on imports from the European Union to 7.5%. The US Commerce Department is expected to agree to a rate of around 10%, the sources said. The tariff relief programme aims to push more carmakers to add US production — and Audi's Georgia plant is the first big test of whether that approach works.
Audi's chief executive, Gernot Döllner, stood alongside President Donald Trump at a campaign rally in Georgia when the plant was announced, and Trump presented the investment as a win for his tariff policy.
What it means for Georgia
For middle Georgia, the plant would be transformative. The region around Macon has long sought a major industrial employer, and the Audi project — plus a possible second phase — would bring thousands of manufacturing jobs to an area where the state's Georgia Quick Start programme is expected to build a training centre and begin classes before the plant is finished.
The project also deepens Georgia's position as an auto-manufacturing hub. Hyundai's $7.59 billion Metaplant near Savannah, which promised at least 8,500 jobs, already anchors the state's auto sector; Audi would add a premium German brand to that base.
“Audi will receive hundreds of millions of dollars in state tax incentives and grants to build a $4 billion assembly plant in the state of Georgia and is considering a second phase, documents released on Thursday showed.” — Reuters, 5 November 2026
The other side of the deal
The expansion is not yet certain, and it comes with questions on both sides of the Atlantic. In Germany, Der Spiegel reported that Audi's plant in Neckarsulm may face closure after 2030, raising the prospect that jobs gained in Georgia could be offset by losses at home — a sensitive issue for the company's German workforce and for IG Metall, the metalworkers' union.
What is not yet confirmed: the second phase is described in the documents as under consideration, not decided. Audi has declined to comment, and Volkswagen's supervisory board must still approve the investment. The tariff relief figures — 7.5% sought, around 10% expected — come from sources briefed on private talks, not from an official announcement.
Frequently asked questions
Where will Audi's US plant be built?
At the Middle Georgia Megasite in Peach County, near Macon, Georgia — a 1,500-acre site the state is giving to Audi as part of the incentive package.
How big is the project?
Phase one is a $4 billion plant producing 200,000 SUVs a year and employing 4,500 workers, opening in the early 2030s. A possible second phase would add $3 billion and 3,000 more jobs by 2033, taking the total to about $7 billion and 7,500 jobs.
Why is Audi building in the US now?
Tariffs. Audi imports all its US-market vehicles from Europe or Mexico, and tariffs cost it around €1.2 billion last year. Building in the US avoids those duties, and the Trump administration has promised tariff relief for carmakers that invest in American production.
Is the second phase definite?
No. The documents show Audi is considering it, but the company has declined to comment and Volkswagen's supervisory board must make a final decision on the investment.
What happens next?
Watch for Volkswagen's supervisory board decision, any formal announcement of the tariff relief programme, and the start of site work in Georgia, which the state has scheduled for 2027.
Key takeaways
- Audi is considering a $3 billion second phase for its Georgia plant, adding 3,000 jobs by 2033 — taking the project to about $7 billion and 7,500 jobs in total.
- Georgia is offering more than $1 billion in land, tax incentives and grants, including $458 million in tax breaks and $430 million for infrastructure and training.
- The plant is a direct response to US tariffs, which cost Audi about €1.2 billion last year; Washington has promised tariff relief for carmakers that build in America.
- The deal is not final: Audi has declined to comment, and Volkswagen's supervisory board must still approve the investment.
- In Germany, Audi's Neckarsulm plant may face closure after 2030, according to Der Spiegel — a reminder that the Georgia gain could come with losses at home.
The Audi deal will be watched well beyond Georgia. If the second phase is confirmed and the tariff relief programme materialises, it could set the template for how other European carmakers respond to US trade policy — building in America rather than paying to ship cars into it. The next signal to watch is the supervisory board's decision, and whether the administration's tariff offer is formalised in the coming weeks.
