Audi chief caught in political storm after Trump rally appearance

Audi CEO Gernot Döllner has come under fire in Germany after joining US President Donald Trump at a campaign rally in Georgia, where the luxury carmaker announced plans for a proposed $4 billion manufacturing plant in the United States.

The appearance has drawn criticism from IG Metall, Germany’s powerful industrial union, which accused Döllner of violating Audi’s internal rules on political neutrality. The proposed investment also requires approval from the supervisory board of Audi’s parent company, Volkswagen, which includes German labour representatives.

The controversy comes as Volkswagen grapples with a sweeping restructuring programme, mounting pressure on its global operations and the challenge of absorbing US import tariffs.

Audi’s US investment plan under scrutiny

Audi’s proposed US plant, which would be its first manufacturing facility in the country, is expected to produce around 200,000 SUVs annually. The investment is aimed at strengthening the company’s presence in the American market and reducing its exposure to import tariffs.

Audi incurred around €1.2 billion in tariff-related costs last year, adding to the financial pressures facing the German automaker.

However, the investment is yet to receive approval from Volkswagen’s supervisory board. The decision is expected to be closely scrutinised amid disagreements over the group’s restructuring strategy and cost-cutting measures.

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Christiane Benner, head of IG Metall and deputy chair of Volkswagen’s supervisory board, said Döllner’s appearance was in clear violation of Audi’s political neutrality guidelines, which restrict public engagements with politicians and political parties during the three months before an election.

Why Trump’s rally appearance sparked controversy

Trump has repeatedly promoted his administration’s auto tariffs as a means of encouraging domestic manufacturing and creating jobs in the United States ahead of the midterm elections.

His political support for Germany’s far-right Alternative for Germany (AfD) party has also made him a controversial figure among sections of Germany’s political and corporate establishment.

German automotive expert Ferdinand Dudenhöffer compared Döllner to Tesla CEO Elon Musk, who has also appeared alongside Trump at political events.

Audi’s code of conduct prohibits public appearances with political parties or politicians standing for election, as well as sponsorship of such events, during the three months leading up to an election.

The episode has raised questions about the boundary between corporate investment announcements and political campaigning, particularly when companies seek to benefit from government trade policies.

Volkswagen faces pressure on multiple fronts

The proposed US investment comes as Volkswagen pursues plans to cut around 100,000 jobs and reduce excess production capacity. The group is struggling with significant losses in China while navigating US tariffs and the costly transition to electric vehicles.

German manufacturing operations have come under particular pressure to reduce costs. Audi’s Neckarsulm factory is among four Volkswagen Group plants facing potential closure from the beginning of the next decade.

The proposed American plant has therefore raised concerns about the contrast between creating jobs in the United States and reducing manufacturing capacity elsewhere.

Despite the criticism, analysts at Metzler said the public perception of the announcement was unfavourable, given Audi’s global capacity reductions, but argued that establishing production in the United States was the right strategic decision.

The final decision on the investment now rests with Volkswagen’s supervisory board, where the proposed plant will be considered against the group’s broader financial, industrial and restructuring priorities.