FRANKFURT – The chief executive officer of VW’s Audi unit drew heavy criticism on Oct 26 for appearing alongside US President Donald Trump at a rally to announce a US$4 billion (S$5.1 billion) plant in Georgia, with the head of Germany’s top union saying it violated the automaker’s company guidelines.

The plan, which still requires approval from the supervisory board of parent Volkswagen, comes after years of considerations over a local plant to escape painful US tariffs that have dealt a massive blow to the company.

Audi CEO Gernot Dollner appeared alongside Trump on Oct 24 at a rally in Perry, near Macon in central Georgia, to announce the plans to build its first assembly plant in the US that will produce 200,000 sport utility vehicles (SUVs) annually.

“The way in which Gernot Dollner has presented himself and Audi in the US is deeply embarrassing, politically unacceptable and unworthy of the company,” IG Metall president Christiane Benner said in a statement, adding that the appearance had violated Audi’s corporate rules. She is also the deputy chair of VW’s supervisory board.

Audi’s code of conduct stipulates that no “public engagements with political parties or politicians standing for election, nor any sponsorship of such events” are to take place in the three months leading up to an election.

The US investment also coincides with VW’s biggest corporate restructuring in history, including massive job cuts as well as potential plant closures at home.

Trump has pressured automakers to move production to the US and has raised tariffs on vehicles, steel, aluminium and parts.

In 2025, Trump’s tariffs dealt Audi a €1.2 billion (S$1.72 billion) blow as it imports all its vehicles for the US market from Europe or Mexico.

Georgia has competitive election races for the US Senate and state governor and Trump is eager to make the case that his auto tariffs are helping the US economy. But critics say they have boosted vehicle prices and that the trade uncertainty has delayed some automaker investments.

“We are planning to bring our biggest and most premium SUVs, and produce them here in Macon, Georgia,” Dollner said at the event. “This is a long-term investment because we believe in the American market.”In Germany, meanwhile, there has been increasing tension between Volkswagen management and workers over massive job cuts in the carmaker’s home market, including possible plant closures in light of rising costs and stiff Asian competition.

“It is right and necessary to better tap into the US market via a new plant,” said Benner earlier. “However, firm prospects for workers at all sites, particularly those here in Germany, must be clearly defined and set out.”An opportunity if German workers benefit Olaf Lies, Premier of the German state of Lower Saxony, VW’s second-largest shareholder, said that expanded production in the US was an opportunity provided German workers also benefit.

“Growth in America must secure jobs and value creation here and must not displace them,” he said.

Dollner defended Audi’s planned investment. “This decision was preceded by many months of careful planning and intense negotiations,” he told reporters on Oct 25.

“If the American President invites you, you accept the invitation. That is what respect for the office and for the country in which we invest demands.”He declined to give full details on the investment deal with the US, including whether it involves tariff relief for the company.

The plan to set up the premium carmaker’s first US production presence was “not a decision against Germany”, Dollner added, arguing that it could protect jobs at home by strengthening Audi’s global business.