Unsigned Georgia draft offers Audi $958.4 million for phase one

The Auto Wire reported that the released copies are unsigned drafts. They set out what Georgia would put up, what Audi must deliver to keep it, and how much larger the site could become. The State of Georgia and Audi of America still have to approve the terms. Whether Audi ever exercises the second phase is unknown.

What Georgia is putting in

Georgia did not hand Audi a check. Instead the draft agreements, released by the Mid-Georgia Gateway Joint Development Authority under open records law, list land, roads, rail and two decades of property tax relief.

The Auto Wire reported that the biggest single item is property tax relief: about $458.6 million over 20 years. Instead of regular taxes, Audi would make payments in lieu of taxes of roughly $295 million over 20 years, starting in 2028. Peach County takes 57%, Houston and Macon-Bibb 19% each, and Fort Valley 5%.

Road work is estimated at $224.5 million. A $94 million REBA grant covers grading, environmental cleanup and Norfolk Southern rail access, and the state's EDGE Fund adds $30 million. Georgia Quick Start would get a $73.5 million training center, with the state covering an estimated $25.4 million of operations and training for its first five years.

The $958.4 million leaves out one credit, The Auto Wire reported.

Georgia's mega project credit allows up to $5,250 per eligible job per year. If all 4,500 phase-one jobs qualified for five years, that is about $118 million more. It pays only once people are on the payroll, which is why Kemp has said Audi has to earn its incentives.

Trump cited $4.2 billion at the Perry rally, while state and company officials put the investment at $4 billion, the AJC reported.

The 80% floor and the option for more

Under the draft agreements, Audi must hit 80% of its promised investment and jobs to keep the full value of its incentives, or pay a portion back, The Auto Wire reported. Georgia writes the same floor into other deals. Aspen Aerogels' 2022 SEC filing on its Georgia plant required at least 80% of investment and job goals, sustained for 60 months.

Phase two is an option, not a commitment, The Auto Wire reported. It would add $3 billion of investment and 3,000 jobs, taking the project to $7 billion and 7,500 workers. It carries its own 20-year property tax break estimated at $361.1 million, plus about $237.5 million in PILOT payments.

Why Audi wants a US plant

Audi imports every vehicle it sells in the US from Europe or Mexico, CBT News reported. The outlet said tariffs cost Audi about 1.2 billion euros, or $1.4 billion, in 2025, and that US tariffs on German vehicles now stand at 15%, down from 25%.

The plant is designed for 200,000 vehicles a year. CBT News reported that Audi sold about 165,000 vehicles in the US in 2025, down 16% from 2024, and that deliveries fell another 16% through September 2026 to about 107,700. The outlet said roughly half of output is designated for export.

GPB reported that Kemp put the average annual salary for the 4,500 jobs at $63,000.

What happens next

Audi's Supervisory Board still has to approve the deal by a two-thirds majority, GPB reported. Seven of its 20 members are Audi workers and three are union members, including the head of the union representing German Audi employees.

The schedules differ. The Auto Wire's dates track the governor's October 24 announcement: grading in 2027, construction in 2028 and full production in 2031. CBT News reports construction starting in 2027 and production in the early 2030s. The conflict is whether 2027 is grading or construction.

The Auto Wire reported that the window for a phase-two decision closes at the end of 2033.