Audi will invest approximately $4 billion to build its first production facility in the United States, with construction of the Georgia plant expected to begin next year. Production is scheduled to start in the early 2030s, and the factory is projected to produce as many as 200,000 vehicles annually.

The decision follows more than a year of evaluation as Audi faced higher costs from tariffs imposed by the Trump administration. Unlike BMW and Mercedes-Benz, which operate major U.S. manufacturing facilities, Audi currently builds the vehicles it sells in the American market at overseas plants. The tariffs cost Audi $1.4 billion last year, according to the supplied report.

Georgia plant will build premium SUVs

Audi plans to produce premium SUVs at the new facility, although it has not identified the specific models that will be assembled there. Reuters reports that the lineup could include the Q7, Q8, and the new Q9, which was displayed during a campaign rally in Georgia.

The plant will be located at the Middle Georgia Mega Site and is expected to create approximately 4,500 jobs. The project is also expected to support additional opportunities for suppliers, training partners, and service providers.

Audi board chairman Gernot Döllner said the company intends to expand its presence in the U.S. premium market through a combination of new products, a stronger brand, and local production. Audi also views the facility as a way to make North America the third major pillar of its global manufacturing network, alongside Europe and China.

Factory designed for flexible production

Because the plant will be built from the ground up, Audi says it can develop manufacturing processes around efficiency, flexibility, advanced technology, and a stronger local supplier base. The company has described the facility as an opportunity to strengthen its wider production network, rather than simply a response to tariff costs.

Audi has also been linked to production at Scout’s planned South Carolina factory. Reuters reports that the brand could build as many as 25,000 vehicles there, although the source does not provide a confirmed production plan.

Audi joins established German automakers

The Georgia project would give Audi a U.S. production presence alongside other German automakers. BMW already manufactures thousands of vehicles in the country, while Mercedes-Benz operates a large facility in Alabama.

Recent investment at Mercedes-Benz’s Alabama operation is expected to raise annual capacity to as many as 340,000 vehicles. The plant currently builds models including the GLE, GLS, EQE SUV, EQS SUV, and Sprinter, with the GLC scheduled to join the facility’s production lineup starting late next year.

During the Georgia rally, President Donald Trump presented the Audi project as evidence of renewed investment in U.S. manufacturing. He claimed that roughly $40 billion had been invested in the American automotive industry, creating 30,000 jobs.