By Bo Erickson and David Shepardson
PERRY, Georgia/WASHINGTON, Oct 24 (Reuters) – US President Donald Trump is expected to announce on Saturday that Volkswagen’s premium subsidiary Audi plans to build an assembly plant in Georgia that will produce 200,000 SUVs annually, a government official told Reuters.
Trump, who has pressured automakers to move production to the United States and has hiked tariffs on autos, steel, aluminum and parts, plans to make the announcement in Georgia near where Audi intends to build the plant, which is expected to assemble the Q7, Q8 and Q9 SUVs. Audi is also expected to announce plans to build 25,000 vehicles in South Carolina, the official added.
Some of the vehicles, which are currently built 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 VW’s off-road brand Scout Motors’ $2 billion plant that is under construction in Blythewood, South Carolina.
COMPETITIVE RACES IN GEORGIA
Georgia has competitive midterm election races for US Senate and governor and Trump is eager to make the case that his auto tariffs are helping the US economy. Critics say the tariffs have led to higher vehicle prices.
Trump’s decision to cut incentives for electric vehicles has led to a significant reduction in US EV and battery production. Overall US vehicle and parts employment has fallen since Trump took office.
A gold Audi with manufacturer license plates was parked outside Trump’s rally in Perry, Georgia.
Audi sales have fallen for two consecutive years and slid 7% in the first half of 2026 as fierce competition in China and US tariffs hit demand. Audi’s US sales are down 16% this year.
Audi’s Neckarsulm plant in southwest Germany is one of four German Volkswagen plants facing possible closure after 2030.
In July, Toyota said it would spend $3.6 billion to build a 2.5-million-square-foot (232,000-square-metre) truck assembly line on its San Antonio, Texas, manufacturing campus and shift some truck production to the US from Mexico. The Japanese automaker said the expansion would be completed by 2030, creating 2,000 jobs.
Honda Motor is considering building a US assembly plant, but has warned it may not unless the US-Mexico-Canada Agreement on trade is extended. Hyundai said last year if it had certainty about USMCA it “would immediately unlock over $20 billion in new American investments.”
(Reporting by David Shepardson; Editing by Nia Williams and Rod Nickel)
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