Audi CEO faces backlash after joining Trump at midterm campaign rally

BERLIN, Oct 26 (Reuters) - Audi chief Gernot Doellner drew heavy criticism on Monday for appearing alongside US President Donald Trump at a campaign rally in the battleground state of Georgia, with the head of Germany's top union saying it violated the automaker's company guidelines.

Doellner appeared alongside Trump ‌at the rally in Perry, near Macon in central Georgia, to announce plans to build a $4 billion plant, the luxury carmaker's first in the US, which would ‌produce 200,000 SUVs annually.

TOP VW COMMITTEE MUST DECIDE ON US PLANT

The announcement of the plan, which needs approval by the supervisory board of parent Volkswagen, including German labour representatives, follows lengthy considerations over launching US production to escape import ​tariffs that cost Audi around €1.2 billion ($1.3 billion) last year.

"Doellner is also in flagrant breach of his own company's rules, which expressly require political neutrality in the run-up to elections," said Christiane Benner, head of Germany's IG Metall union and deputy chair of Volkswagen's supervisory board.

The US state of Georgia will support Audi's investment with $1.4 billion, German news outlet Focus reported on Monday, citing a person familiar with the matter.

Audi said a delegation had travelled to Georgia to advance negotiations over the planned plant and accepted an invitation to present the project alongside Trump.

"We accepted this invitation solely with Audi's ‌best interests in mind," the company said in a statement. It ⁠also said it was taking very seriously the notion that Doellner's appearance was being interpreted as a sign of political support.

A person familiar with the matter said Audi's management board had cleared an exception to the company's code of conduct before Doellner's appearance. Under the code, the board ⁠can allow deviations from the rules except in cases involving criminal offences, the source said.

The automaker's top stakeholders discussed the matter during a meeting attended by Benner and another labour representative Daniela Cavallo, with the latter expressing reservations about the appearance without formally opposing it, the person said.

"From a pure business perspective, localising Audi's production in the US may make sense," Cavallo said in comments shared internally and seen ​by ​Reuters. However, with his appearance, Doellner "allowed himself to be turned into a puppet in the propaganda show" of ​Trump, she said.

A second person confirmed that Volkswagen's supervisory board committee — which ‌is already fraught with tension over the company's sweeping restructuring — had discussed the issue on Friday.