Trump is expected to announce Audi's plan to build a factory in Georgia, US, says source

US President Donald Trump is expected to announce on Saturday that Volkswagen's premium vehicle subsidiary Audi plans to build an assembly plant in Georgia with the capacity to produce 200,000 SUVs a year, an administration official told Reuters.

Trump, who has been pressuring automakers to move production to the United States and has raised tariffs on automobiles, steel, aluminum and parts, plans to make the announcement in Georgia, close to where Audi plans to build the factory, which is expected to assemble the Q7, Q8 and Q9 SUVs. Audi is also expected to announce plans to produce 25,000 vehicles in South Carolina, the official added.

Some of the vehicles, currently manufactured in Europe, would be exported, the source added.

Audi declined to comment. The White House did not immediately respond to a request for comment.

The vehicles to be produced in South Carolina will be assembled at the US$2 billion (R$10 billion) factory for Scout Motors, VW's off-road vehicle brand, which is under construction in Blythewood, South Carolina.

Georgia has tight races in the midterm elections for U.S. Senate and state governor, and Trump is keen to make the case that his auto tariffs are helping the U.S. economy. Critics say the tariffs have led to increased vehicle prices.

Trump's decision to reduce incentives for electric vehicles caused a significant drop in the production of electric vehicles and batteries in the United States. Overall, employment in the country's vehicle and auto parts sectors has declined since Trump took office.

A gold Audi with manufacturer's license plates was parked outside Trump's rally in Perry, Georgia.

Audi's sales have fallen for two consecutive years and fell 7% in the first half of 2026 as fierce competition in China and U.S. tariffs hit demand. Audi sales in the United States have fallen 16% this year.

The Audi plant in Neckarsulm, southwest Germany, is one of four German Volkswagen plants that could be closed after 2030.

In July, Toyota said it would invest US$3.6 billion (R$18 billion) in the construction of a 232,000-square-meter pickup truck assembly line at its industrial complex in San Antonio, Texas, and would transfer part of pickup truck production from Mexico to the United States. The Japanese automaker stated that the expansion would be completed by 2030, creating 2,000 jobs.

Honda Motor is considering building an assembly plant in the United States, but warned that it may abandon the project if the United States-Mexico-Canada Agreement is not extended. Hyundai said last year that if it had certainty about the USMCA, it would "immediately unlock more than $20 billion in new investment in the United States."