German automaker Audi, a division of Volkswagen (VLKAF), plans to spend $4 billion U.S. to build its first manufacturing plant in America.
The new Audi plant will be located in the U.S. state of Georgia and production at the facility is expected to start in the early 2030s.
Audi executives said the project aims to expand the brand in the U.S. while reducing its exposure to import tariffs and other trade risks.
The Georgia plant is expected to have an annual capacity of up to 200,000 vehicles.
The announcement of a new automotive plant in America comes amid an intense restructuring of Audi’s Volkswagen parent company.
In recent months, Volkswagen has announced plans to cut 50,000 jobs and close four plants in its home market of Germany, including an Audi manufacturing facility.
Volkswagen has blamed U.S. tariffs and rising competition from China for hurting its sales and demand for its vehicles.
The Audi nameplate has struggled with dwindling sales in the U.S. over the past decade amid rising operational costs and Trump’s tariffs on vehicles made in Germany.
Current U.S. tariffs on vehicles from Germany are 15%. Audi’s U.S. deliveries were down 16% year-over-year in 2025.
Last year, U.S. tariffs cost Audi 1.2 billion euros ($1.4 billion U.S.) as it imports all its vehicles for the U.S. market from Europe and Mexico.
The company said the Georgia plant is expected to produce Audi’s Q7, Q8 and Q9 vehicles.
The new plant will have capacity to produce up to 200,000 vehicles per year, half of which will be exported outside the U.S.
Volkswagen’s stock has declined 64% over the last five years to trade at 69.20 euros per share.
