Audi plans to spend $4 billion on its first US factory, in Macon, Georgia, creating 4,500 jobs.
Audi said it will invest $4bn (£3bn) in a factory in Macon, Georgia, its first manufacturing site in the United States, according to The Guardian. The company aims to build 200,000 SUVs a year there and create 4,500 jobs.
The plant will produce the Q7, Q8 and Q9 models, and some production will move from Bratislava in Slovakia. Volkswagen is planning the Q9 as its largest-ever SUV, with the American market in mind.
Audi chief executive Gernot Döllner said the company plans "to bring our biggest and most premium SUVs, and produce them here in Macon, Georgia." He added: "This is a long-term investment because we believe in the American market."
Döllner made the announcement alongside Donald Trump at a campaign rally on Saturday night. The Guardian described this as an unusual step for a major European brand, coming just days before the US midterm elections.
According to the paper, Republicans are trying to keep control of both houses of Congress but are polling poorly. It cited higher fuel prices linked to Trump's war on Iran, and his trade war with some of the country's biggest trading partners.
Döllner said he accepted the invitation to speak out of respect for the US. Headlines from other outlets, including The Telegraph and Reuters, point to criticism of the decision and to Audi defending its choice to appear with the president.
The investment follows a difficult period for Volkswagen, Audi's parent. The Guardian reported that Audi has been hurt by Trump's 15% tariffs on imports from the EU. It has also been affected by the president's efforts to reduce sales of battery electric vehicles in favor of petrol cars.
Volkswagen has said the tariffs cost it up to €5bn (£4.2bn) a year, before the effect of lower sales. This month, the company said it was still struggling with "continued high pressure from import tariffs." Chief executive Oliver Blume told investors in July that "US tariffs create a significant burden and restrict international trade."
The company has also moved some production of its cheapest cars, including the Jetta saloon and the Taos SUV, from Mexico to the US.
The new factory may add to tensions in Germany, where Volkswagen has begun cutting as many as 100,000 jobs and closing factories, according to The Guardian. The company has blamed those cuts on intense competition from Chinese carmakers, the tariffs, and the heavy investment needed to shift to electric vehicles in markets other than the US.
Trump has long argued that his tariffs are boosting US manufacturing employment and has highlighted new factory investments. The Guardian noted, however, that US vehicle and parts employment has fallen since he took office last year.
Volkswagen has said there is still American demand for Audi's large petrol SUVs. The Guardian added that such vehicles have played a big role in global carbon emissions.
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