There are approximately eight days to go until extremely consequential midterm elections in the United States. Whatever your politics, whatever your beliefs, if you are a major consumer brand, it’s probably not the ideal time to get in the middle of it. This is doubly true if you’re a foreign brand. Someone tell Audi’s CEO.
The Morning Dump will wade into politics a bit, but not out of choice. Audi made that choice (or that choice was made for them). After getting absolutely wrecked by tariffs, the German brand has selected a spot in Georgia to make large SUVs. Volkswagen already has a presence there already so this seems like an efficient solution. A little less efficient, perhaps, is announcing it at a rally held by President Trump in a key swing state.
European automakers are looking to expand in the United States because China’s not a great market for them right now and, for the first time ever, Chinese automakers have overtaken Japanese ones at home for a full quarter. At least one Japanese automaker is going to shift EV to try and salvage sales there.
Audi Needs The United States
The once mighty Audi brand is now not quite so mighty. Tesla was probably the first problem, sucking up a large share of its tech-y customers. Then there was Dieselgate. China? Audi isn’t alone in having medium troubles in big China, though its weird bifurcation strategy to salvage sales there haven’t gone to plan.
Audi tried to sell a bunch of EVs in the US, but that didn’t go as predicted, either. Enthusiasts have argued that the four-ringed brand has become a three-ring circus. So long as Audi can sell Q5s at a reasonable price in the US it’s fine. Oh, right, Audi only makes cars in Europe or Mexico, and the ones in Mexico aren’t USMCA compliant so… the company has been thrashed by tariffs.
What’s the plan? The company will soon break ground (if approved) on a plant in the United States, probably to build its Defender fighter. It’ll be in Georgia, which is a fine place to build a car. Governor Georgia Brian Kemp has been effective at bringing German automakers to the state, and it probably doesn’t hurt that you can get regular flights from Atlanta to Germany. From the company:
Audi is taking a major step in its global growth strategy with plans to establish its first U.S. production site in Georgia. The company intends to invest around $4 billion and create approximately 4,500 jobs. Construction of the plant, designed for an annual production capacity of up to 200,000 vehicles, is scheduled to begin in 2027, with production planned to start in the early 2030s.
With premium SUVs tailored to North American customers and manufactured locally, Audi aims to unlock significant growth potential in one of the world’s most important premium markets. The planned investment intends to mark a long-term commitment to the United States and to establish North America as a third major pillar of Audi’s global production network alongside Europe and China.
I’m sure we’ll find out soon enough what this cost Georgia in tax breaks.
Given the nonstop coverage of the election this week it seems like a weird time to announce this. I wonder, what could have caused that?
The Döllner Went Down To Georgia, And Had Himself A Time
Blergh.
Right up front, let me just say that executives of companies are allowed to appear with politicians. It’s fine. People got upset when then President Joe Biden went to the Detroit Auto Show and hung out with GM CEO Mary Barra. People get upset when President Trump goes to an auto plant and Ford CEO Jim Farley is there. The reality is, cars shouldn’t be Republican or Democratic. It’s a much worse country when only Republicans are allowed to drive Mustangs, Democrats are restricted to Blackwings, and the Lyndon LaRouche people only get Chevy Citations.
However, there’s a general understanding that if you’re CEO of a capital-b Brand that you don’t go to a campaign rally very close to an election in a key state, as a representative of your company (unless you’re Elon Musk, obviously). CEOs are allowed to have their own politics, and if they want to voice them as private citizens, sure. Why not?
Audi CEO Gernot Döllner, who has been known for his missteps, did something quite unusual. He went to a rally held by President Trump to support candidates, and he announced the plans for the plant above. You can see his carefully prepared remarks here, and to his credit, he doesn’t say anything explicitly political. His presence there, though, is explicitly political. There’s no getting around it. And Audi had to know this. The company even brought a gold-wrapped calf Audi Q9 to the event.
It is not a good look to let your CEO be used by a prop at a campaign rally moments before a pivotal election. Just from a messaging standpoint it sets you up for people to point out things like President Trump referencing competitor Mercedes-Benz (although he was doing so to make a point that is an objectively racist lie). Unless you’re the MyPillow guy, just stay out of it.
There’s so much going on that, frankly, this might just slip under the radar here in the United States. Some people got upset when Toyota Chairman Akio Toyoda wore a bunch of MAGA stuff at an event in Japan, then promptly got over it.
In Germany, though, the reporting has been harsh. Here’s a bit from Die Zeit, which is one of the most important news sources in the country:
The SPD’s transport expert, Isabel Cademartori, spoke of campaign support for Trump. “This is a disgrace, especially considering the history of the VW Group,” she said. While workers in Germany were worried about their jobs, Audi was announcing billions in investments for a new US plant under Trump “in the politically hotly contested state of Georgia, which will be crucial for the future balance of power in the Senate,” the politician said. “To campaign aggressively for an autocrat who is waging a trade war against Germany is a new low for the VW Group,” Cademartori said.
The car manufacturer Audi is a subsidiary of Volkswagen. Cadematori did not elaborate on her reference to the history of the VW Group in this context. Volkswagen was founded during the Nazi era and served as a flagship company for Hitler’s regime.
Lest you think this is just a critique from the left, here’s a bit from Politico.eu:
MEP Dennis Radtke from the center-right Christian Democratic Union party also lambasted Döllner’s appearance at the Republican campaign rally. “Donald Trump’s policies are massively damaging German industry, including the automotive industry,” he told German media outlet Handelsblatt.
“The fact that German companies invest abroad is initially a completely normal and understandable process. However, to turn this into an election campaign staging for Donald Trump is disturbing and pathetic,” he added.
Not great. An article in Manager Magazin points out that what Döllner did might technically be against company policy:
According to Audi’s “Booklet of Policies,” no publicly effective events with political parties or politicians running for election are to take place in the three months leading up to the election. Sponsorship of such events is also prohibited. Döllner’s stage presence at a Trump campaign event, just over a week before the midterm elections, seems difficult to reconcile with this self-imposed obligation.
Döllner said of his appearance that respect for the office required him to accept an invitation from the US president. He described it as a “very special moment” and a “particular setup in which I had to operate” when he appeared on the campaign stage alongside Trump.
The premier of Lower Saxony weighed in, via DW.com:
Lower Saxony premier Olaf Lies has criticized Audi CEO Gernot Döllner’s appearance alongside US President Donald Trump at a campaign rally, saying he had become part of a political spectacle.
“A campaign rally cannot be the right place to announce an investment of this magnitude,” said Lies, whose state is Volkswagen’s second-largest shareholder.
It’s also probably worth mentioning here that the board has to approve this, and the board hasn’t approved this yet. It’ll be interesting to see if any reporting turns up that Audi or Volkswagen were pressured to make the announcement early in order to give President Trump something to crow about while in the state. That’s maybe the most charitable version of this, that the company was strong-armed and not given a choice seems better than anyone thinking this was a good idea.
Even in that case, though, just send Audi of America President Vito Paladino up on stage (he was there). No one at the rally is going to know the difference, and at the very least you’re not sending the CEO up there.
Chinese Brands Outsell Japanese Brands For A Full Quarter In Europe
The last few times I’ve been to Europe it’s been less of a surprise to see Chinese cars, and more of a shock to not see that many Japanese ones. It’s gotten so bad for Japanese automakers that, according to Bloomberg, Chinese automakers are now pulling away from Japanese ones in that market:
Registrations of Chinese-branded cars roughly doubled from a year earlier in the three months through September to make up 12.7% of total sales across the region, led by hybrids, according to market researcher Dataforce. That’s put them ahead of Japanese manufacturers including Toyota Motor Corp. at 11.9%.
The advance accelerated at the end of the quarter. Chinese brands’ European share jumped in September to a record 14.5%, according to Dataforce, almost three percentage points higher than in August.
Even in Europe, it’s the decade of the hybrid. Or décennie du Hybrid, maybe.
Subaru Is Going EV-Only In Europe
I only remember Subaru sells cars in Europe because the heroes of Edgar Wright classic Hot Fuzz drive a sweet WRX at the end of the movie. Rather than try and figure out a way to keep selling boxer engine-powered cars while also meeting tougher Euro 7 emissions regulations, Nikkei Asia has learned that the company is going to go all EV:
The phaseout covers models with Subaru’s signature horizontally opposed, or boxer, engines, notably the Forester and Crosstrek SUVs. Unlike in Japan and some other markets, Subaru does not offer full hybrid models in Europe.
A key driver of the shift is the mounting cost of meeting Europe’s tightening environmental rules. The upcoming Euro 7 emissions standards are due to apply to all new cars, including models already on sale, beginning in November 2027. In addition, CO2 emissions requirements will tighten by 2030, adding to the pressure on automakers to sell more EVs.
To comply with the new laws, Subaru needs additional development, which will increase costs. In Europe, the company sold 23,000 cars in the fiscal year through this past March, less than 3% of the 890,000 it sold globally. These limited sales and Europe’s strengthening emissions standards led the company to focus on EVs.
That’s a bold strategy Cotton, let’s see if it pays off for ’em.
What I’m Listening To While Writing TMD
It’s the end of baseball season and I’m trying to enjoy these last few games, as well as the rare moment when a team that has never won a World Series is going to get a shot. Is there a best baseball song? No. “Centerfield” by John Fogerty has to be on the list, though.
The Big Question
That John Fogerty video has a bunch of baseball cards, which has me thinking of the automotive equivalent: Matchbox Cars. What’s the best Matchbox Car/Micro Machine/Hot Wheels you’ve ever had?
Top photo: Audi
The best one was the one I found for my daughter when she was 5. At the time her favorite things were Hello Kitty and VW Microbuses. I just happened to find a VW Microbus Hot Wheels with Hello Kitty all over it. She’s 11 now and it’s still her favorite and gets to sit on her bookcase instead of the hot wheels bin with a few other favorites of hers
There were many HW and Matchbox cars that didn’t survive my childhood, but I still have a sizable collection. Ones that I always thought were *cool* were a lime green Matchbox Ford Cortina with red interior, and a European Ford Escort convertible, it was white with a roll bar and blue trim.
I still have hundreds, maybe over a thousand at this point, of unopened die-cast VW cars. We have an inventory list and are constantly collecting. I don’t know why I do this given that they just end up in totes in storage, but I’m too far in to just stop.
If there was a brand going EV first, I would have thought it be Subaru. Kinda surprised it took them so long to abandon (in Europe at least) their dog shit engines. Talk about how many things are solved at Subaru by abandoning their ICE engines. Goodbye noisy, underpowered, inefficient, unreliable, rattly engines.
Don’t worry, if anyone can figure out a way for an EV to somehow burn oil, it will be Subaru, inexplicable oil loss is what makes a Subaru a Subaru
Don’t forget about their less-than-stellar CVTs. I mean, I guess as far as CVTs go, theirs seem to be among the best. But the top turd at shit mountain is still a turd.
TBQ – I have a lot of Micro Machines from when I was young. They are all in storage waiting for my youngest to be old enough to not try eating them. She still eats random crap out of the trash so it may be a couple more years.
Most of my Hot Wheels had lead paint so they never had an opportunity to get passed down. But my purple 1956 Chevy Step Side truck has joined his collection! It was one of my favorites and it’s probably in the top 100 of his favorites. My son has a lot of Hot Wheels… My son may be an excuse for me to buy and play with Hot Wheels!
About the US Audi plant. Could they start building Audi SUVs at the VW plant in Chattanooga, Tennessee? Adding a model or two to the factory mix may be easier than building a new facility.
As someone who worked for an internet parts retailer for many years and saw many failures I could never logically buy an Audi. Now I could never morally buy one either.
TBQ: I was always a huge fan of Japanese Tomica toy cars. My dad worked for an Asian airlines used to have a ton as a kid, but now they’re mostly gone. I still do have my favorite Kenmeri Skyline GT-R toy from back then.
Best Matchbox of my youth: Matchbox #75 Ferrari Berlinetta, emerald green. It helped launch my love of Italian cars. My first new car (I was 17) was a 1972 Fiat 128, followed by a new 1974 X1/9 (my baby Ferrari) which I still own.
I still have my childhood Hot Wheels/Matchbox/Johnny Lightning collection. I’d say my fave true Lesney era MB would be a Ford GT40 from late ’60s/early ’70s. It was one of the MBs that had tires separate from the wheels, which was cool for playing pit stop during one of my 1:64 races.
A close second would be a Lamborghini Marzal from the same era, maybe a bit newer. But it has the traditional one piece tire/wheel like most 1:64 cars.
It’s a tie between my blue Roll Cage that came with Stunt Track Driver 2 and the Highway 35 Deora II.
I mean, that’s kind of perfectly on-brand for Audi- executives totally misreading the American market and somehow managing to piss of consumers in like five countries by their sheer ineptitude.
I repeat my earlier assertion that the VW group cannot survive in it’s current form and needs to split along easier to manage lines (maybe brands, but possibly geographic markets).
TBQ: The 1980’s mining dump druck, because it made the biggest bang when thrown off of the Power Launch.
TBQ – the one that sticks in my mind was a metallic lime green station wagon with a white interior and yellow windows. It was remarkable as it had a drop-down tailgate and my grandfather bought it for me at a flea market in Connecticut.
I think it was a Ford, but tbh I don’t remember fully.
I think i had that one also!! LTD wagon, maybe?
My first thought was also LTD wagon. Turns out it was a Mercury Cougar Villager wagon, Matchbox Lesney #74.
Google searches show that I was incorrect about the colors, too.
It had a yellow interior with clear windows.
…and all this time we thought that the name for the re-badged Nissan Quest minivan was original. Pshaw, I say!
The Villager was an Edsel (also a station wagon) before it was a Mercury!
yup, that’s it!!! definitely the one. need to dig through the buckets of old hot wheels my mom found in the attic, might be in there!!
I had a black and gold Trans Am from Matchbox with the screaming chicken on the hood, and that was the coolest car I had for many years before I even understood what a Trans Am was. Used to play with it while wearing my black polo with blue flames in late elementary school… Turns out giant obnoxious graphics, flame or bird or otherwise, are kinda awesome lol.
Ironically, the only time I can ever getting in trouble with my Matchbox cars was launching them across the room into my grandparents large collection of actual matchbooks (possibly due to the piano underneath, but it seems less poetic that way).
I don’t remember anything special from my youth, even though I had one of those giant 2 liter bottle boxes full of them.
I’m still buying them at 59, so my latest GR Corolla and the NB Miata are on the list near the top.
TBQ. I had a beautiful Saab Sonnet in turquoise as a kid. And because I was a kid, I stuck a firecracker in it and set it off. It had some scorch marks and the body sort of separated from the chassis . . . but like the birth of a superhero due to radiation or some other mishap, this Matchbox was THE FASTEST CAR in the neighborhood when run on the plastic track. I hope the little Saab is in a box somewhere in the house but I fear it’s long gone.
I’m not a huge fan of the current Audi boss, so if he gets a golden parachute out of this it won’t break my heart. I wouldn’t be surprised if his arm was twisted, though.
TBQ:
In elementary school (late 1970s) we played a matchbox car version of demolition derby where we would sit in a circle and flick our cars into a pile in the center and the cars that were not on 4 wheels were out and the last car upright was the winner. I had this red RV matchbox which was wildly stable. It won nearly all the time.
By personal favorite I still have is a blue ford RS200.
TBQ: I can’t recall any specific Matchbox or Hot Wheels growing up. None of them lasted very long because my older brother and I would smash them, torch them with a can of Gumout, and come up with gruesome stories about the accident. It’s amazing we turned out to be functioning adults…
The Audi thing played big in France, not in a good way, making main television news. Think last time VW group did that was diesel gate.
French already accuse Germany of bending over and taking it from Trump, and this just reinforced the perception.
I’m not sure a long term Audi
bribe paymentstrategy to create strife within the EU in exchange for tax credits pays off for VW or for Döllner.medium troubles in big China
That’s a bold strategy Cotton
Wow, Hardigree, you’re on fire this morning!
I came here to say this!
I wish the whole article had been written in the style of Pork Chop Express CB radio rant.
You have a press conference with Donald Trump and half a city block explodes in a ball of green flame. Green flame! All hell is breaking loose here.
Very underrated movie. So over the top and cheesy and awesome the whole way through.
For those that don’t know: Big Trouble in Little China.
Not only was that a disgraceful move on the Audi CEO’s part, it was also disgusting and despicable.
TBQ: how dare you make me choose between my children!
…it’s probably the Matchbox GWR 5700…or the ’90s Hot Wheels Bigfoot Legends truck.
Another minor reason not to buy a VW. Reason 1 is their pathetic quality followed by related reason 2 – they won’t stand behind their warranty. I’ve owned 4 VWs, the Sportwagen TDI was the last.
Too bad . . . the Sportwagen was had a great formfactor.
It was a great form factor and I liked it better than our current Acura wagon. The problem was that it was a lemon that VW refused to fix even with the dieselgate warranty and clear technical service bulletins on the problem.
Poor fuel economy too. We only averaged 36 mpg and our best ever tank was 42 mpg.
I would kill for anything over 30mpg. My 2009 Outback gets 27 on it’s BEST day.
Imagine it’s already paid for and you’ve got a lower insurance cost versus something newer. Something positive, even if not your preference…
It’s laughable how little it costs to run . . . when an expensive repair inevitably pops up though . . .
Years ago, I had a questionable car, and when the repairs got to the point of the cost of buying a used car, I traded. It was only 12 years old at that point but from the American 1970s.
I started a savings account and monthly placed a projected payment for a used car into that account. (Fortunately, a grandparent separately loaned me a downpayment when I needed to buy.) That’s how I made sense of answering the question about when to trade.
Choices are made. Our idea of “good” fuel economy changed when we bought our 2003 Jetta Wagon TDI that averaged 47 mpg. That was followed by a hybrid that averaged 46. Plenty of fuel efficient options out there.
The Acura’s fuel economy is dismal at 29 mpg but it is paired with a Chevy Bolt that costs less than 3 cents per mile to “fuel”.
Damn. I had a ’15 Sportwagen TDI that I tracked fuel economy for ~48,000 miles on Fuelly. Average 44.5 mpg over that, and even broken into 50mpg for a tank or two.
Loved it (minus the sweaty seats) but ultimately let VW buy it back.
They didn’t do so well sitting in the desert for about 2 years and then being “fixed”. A guy at work had an identical ’14 as mine right down to the color and his was a lemon too. Similar fuel economy and both of us had the giant sun roof fail. He kept his longer and the DPF failed in no time. He bought his as a CPO and the extended warranty really paid off.
I sold mine to Carvana in 2022 for thousands more than I paid in 2018. Basically an even swap on the Acura wagon. With the price of diesel the Acura is cheaper to fuel.
I hear the “fixed” TDIs that used DEF did better after the fix but it is still a VW.
I’m starting to wonder how many new cars don’t have some sort of baggage that comes with them, from the brand, executives, and also suppliers, given Bosch’s role in Dieselgate. If someone wants to only buy a car that is free from any form of disgrace, the list might be pretty short at this point.
Slate?
Isn’t Slate bankrolled by Bezos? That’s a bit problematic.
I thought he was an investor but not a majority one.
I don’t know what percentage/dollar amount he has contributed, but I think it is significant.
I mean significant by my standards, probably pocket change for him.
According to CNBC, Bezos was one of sixteen initial investors and then contributed more funding in a second round along with other investors who contributed more. https://www.cnbc.com/2025/06/07/jeff-bezos-slate-auto-ev.html
From what I can tell by searching “Jeff bezos slate trucks” in DuckDuckGo, he’s an investor but not a majority investor. I think media outlets are attaching his name to Slate because he’s a somewhat famous person and gets clicks. I also think framing them as “Bezos-backed” gives the impression they’re a pet project of his and subject to his whims when that’s not entirely the case from what I can tell. He’s probably opened some doors and given them a level of (in)credibility they wouldn’t have had access to.
Actually, that would be a good article. Just how involved is he in Slate?
Haven’t read a thing about Slate on the site in a while.
Audi’s stupidity is just an unforced error. There is no reason the plant had to be announced now, it could just as easily be announced mid-November. I say this as someone that works for an automaker that is waiting until after the election to announce the location of a new factory in a state with very competitive races. There is no upside to getting into state / national politics.
+1 for a company with a little sanity.
The European arm of Big Head Gasket must be in shambles based on this news.
I thought they usually had 2 small head gaskets?
That’s the problem. The big head gasket becomes two small ones at some point in the engine’s life.
Lol, no doubt Subaru will find a way to engineer in at least one expensive weak point.
Those battery cells have to be sealed into their skateboards with some kind of gasket, just sayin’.
I have at least one of the Ferrari F40 Hot Wheels with the opening hood, but probably the best would be the Mika Hakkinen McLaren Formula 1 car
Lower Saxony premier Olaf Lies
Has there ever been a more appropriate name for a politician?
TBQ: Pretty much the only Hot Wheels I remember from my youth were a pair of fire trucks based on the 70s TV show Emergency!
No, it’s a Muppet act: Gonzo fiddles while Olaf Lies!
I would like to point out again that he sells the beer coasters from his town hall meetings with the even more unfortunate motto “Lies live”.
https://shop.spd.de/bierdeckel-lies-live-auf-ein-wort-niedersachsen/a105670
TBQ: My first Matchbox love, still in the collection to this day, was my blue over blue W124 Mercedes 300E. Still has the hood ornament intact, too! My favorite modern 1:64 release is the absurdly good (and it should be, for the price) Tomica Limited Vintage Chevrolet Astro.
I’m going to ignore the political stuff because I’m in Ohio and between the 25 pounds of mailers I receive everyday and ads being blasted in my face 24/7 I am stretched to my absolute wits end.
Instead, I will say that I really like the Subaru Trailseeker and am shocked at what a good deal it appears to be.
It’s a far, far more attractive Outback than the actual new Outback. In some markets, I think it actually is an Outback.
A friend just got one and really likes it so far.
Saw an Uncharted for the first time recently. It’s an attractive vehicle. And since all of Subaru’s EVs look very similar, I’d bet the Trailseeker is, too.
During the morning news there was an absolute masterpiece of an ad. It was just a dog in front of a crackling fireplace. At the end it said: “This break from political ads brought to you by the Portland Downtown Market”.
I am disappointed to say that political ads have now invaded my streaming content. They are even more annoying than the ads for casino apps.
I signed up for YouTube Premium just to avoid them. I watch a lot of quiet, crafting-type YT videos and got so tired of finally relaxing while watching someone restore a sailbot only to be immediately blasted with, “SHERROD BROWN IS GOING TO SEND TRANS KIDS TO YOUR HOUSE TO BREAK YOUR DISHES AND BUILD BICYCLE LANES THROUGH YOUR KITCHEN!!!!”.
I generally subscribe to ad-free streaming but HBO Max for $2.99 a month was a bit hard to pass up. (2025 Cyber Monday deal)
uBlock Origin for the PC. Orion browser for iOS.
I get so many political text every day, I hate it here. Just leave me the hell alone, y’all ain’t gonna change my mind!
If someone is dumb enough to to be swayed by a text message, I would hope that they have a drool bib on and aren’t voting.
Keep in mind the intelligence of the average American.
Then remember that only half the population are above that.
Oh, they’re absolutely voting. Keep that in mind when deciding whether to vote yourself. Do you want to let them decide the future of your country, state, county, etc.?