Audi acknowledges Trump appearance ‘caused concern’ as motives questioned
The appearance of Audi's CEO alongside US President Donald Trump at the announcement of a new factory has raised eyebrows.
Audi has had to clarify why US President Donald Trump was at its announcement of the plans to build a car plant in the state of Georgia, amid reports the brand will get relaxed import tariffs for doing so.
Last week, Audi announced it was investing US$4 billion (AU$5.7 billion) to construct and operate its first US car factory, slated to open in the early 2030s and produce approximately 200,000 vehicles at its peak.
At present, the Audi Q7, Q8 and Q9 have been penciled in to be produced in Georgia, with plans to sell the cars in the North American market.
The announcement was made as the business continues to take hits from the current US Government’s steep tariffs, with its European-sourced models hit with a 15 per cent tariff, while those built in Mexico incur a tariff of up to 27.5 per cent.
In total, tariffs on cars and related parts have cost Audi approximately US$1.4 billion (AU$2 billion) in the past year, making its North American business unprofitable for now.
While the plans for the factory are logical from a business perspective, the announcement drew criticism after Audi CEO Gernot Döllner appeared at a local Republican rally alongside President Trump, with a gold Audi Q9 parked outside.
The IG Metall union, which represents the workforce of the Volkswagen Group that Audi is a part of, condemned Döllner’s appearance at the rally, criticising him for breaking the brand’s requirement for political neutrality, and poorly representing his company.
“The way Gernot Döllner presented himself and Audi in the US is highly embarrassing, politically unacceptable, and unworthy of the company – but above all, of Audi’s employees,” said IG Metall president, Christiane Benner.
“As President of IG Metall, a union that stands for solidarity, democracy, and openness and opposes all forms of misanthropy, such behavior not only personally offends me – I also unequivocally condemn it.
“Döllner is also flagrantly violating his own company’s rules, which explicitly mandate political neutrality in the run-up to elections.”
In response to the criticism towards Döllner, Audi issued a statement in a bid to “add context” to his appearance with President Trump.
“The trip to Georgia and the public appearance with the President of the United States have raised questions and caused some concern. As a company, we would like to provide context,” the statement read.
“An Audi delegation travelled to Georgia to move forward with discussions and negotiations regarding our planned production site. During these talks, we were asked to present our plans publicly together with the President of the United States.
Jordan Mulach
“We accepted this invitation solely with Audi’s best interests in mind.
“At the same time, we acknowledge that the circumstances surrounding the announcement may have been perceived as a political signal. We take this very seriously.
“We remain firmly committed to Audi’s values and principles. Equally, we have a responsibility to safeguard the company’s economic future. We believe these responsibilities go hand in hand and together guide our actions.”
Following the announcement and Audi’s subsequent clarification, Reuters later reported the Trump Administration has offered Audi reprieve from its high tariffs to get the new Georgia plant across the line, according to at least two insiders.
The insiders claim Audi wants its tariff on European imports to be halved from 15 to 7.5 per cent, however the US Commerce Department was aiming for the tariff to only be cut to 10 per cent.
