Trump to announce Audi assembly plant in Georgia, official says

Factory expected to produce 200,000 SUVs annually; Audi also planning vehicles in South Carolina

By LineZotpaper AI staff

Published25 October 2026

Read Time2 min

Sources2 outlets

President Donald Trump is expected to announce on Saturday that Audi, the premium subsidiary of Volkswagen, plans to build an assembly plant in Georgia that will produce 200,000 SUVs each year, a government official told Reuters. The plant, expected to assemble the Q7, Q8 and Q9 models, would be built near where Trump plans to make the announcement. The official also said Audi intends to build 25,000 vehicles in South Carolina, assembled at a separate Scout Motors plant under construction in Blythewood.

Trump, who has pressured automakers to move production to the United States and hiked tariffs on autos, steel, aluminum and parts, is expected to highlight the investment as evidence his trade policies are working. Georgia, which holds competitive midterm races for Senate and governor, provides a political backdrop for the announcement.

The vehicles, currently built in Europe, would partly be exported, the official said. Audi declined to comment. The White House did not immediately respond to a request for comment.

Critics of the administration argue the tariffs have raised vehicle prices. Meanwhile, Trump's rollback of electric vehicle incentives has slowed US EV and battery production. Overall US vehicle and parts employment has fallen since Trump took office.

Audi's US sales have fallen 16% this year, and the company has faced declining sales globally, including a 7% drop in the first half of 2026. Audi's Neckarsulm plant in southwest Germany is among four German Volkswagen plants that may close after 2030.

Other automakers have made similar moves. In July, Toyota said it would spend $3.6 billion on a truck assembly expansion in Texas, shifting production from Mexico. Honda has said it may build a US plant but only if the US-Mexico-Canada Agreement is extended. Hyundai has also signaled it would unlock $20 billion in US investment if given USMCA certainty.

Analysis

Why This Matters

The announcement could bolster Trump's argument that tariffs are bringing manufacturing back to the US, ahead of critical midterm elections.
The factory plan comes amid falling US auto employment and declining EV production, raising questions about the overall health of the industry.
Other automakers are watching trade policy closely, with investment decisions contingent on the future of the US-Mexico-Canada Agreement.

Background

The Trump administration has used tariff increases and pressure on automakers to encourage domestic production. This expected Audi announcement follows similar commitments from Toyota and consideration by Honda and Hyundai, though all have tied major investments to the extension of USMCA trade terms. The US auto sector has seen job losses and reduced EV production under the current policy mix.

Key Perspectives

Trump administration: says the investment shows tariffs are helping the US economy. Critics: argue tariffs have led to higher vehicle prices. Honda Motor: is considering building a US assembly plant but warns it may not proceed unless the US-Mexico-Canada Agreement is extended. Hyundai: said last year that with certainty about USMCA it “would immediately unlock over $20 billion in new American investments.”

What to Watch

Trump's announcement on Saturday in Georgia and whether it includes further details on timing and investment.
The outcome of Georgia's midterm races, which may influence the narrative around trade policy.
Continued moves by other automakers, especially Honda and Hyundai, who have conditioned major US investments on USMCA certainty.

Sources

Checked

12 claims in this story checked against 1 source: 5 supported.

Show each claim

SupportedTrump is expected to announce Audi’s plan for a Georgia assembly plant, an official says.US Top News and Analysis: “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.”
SupportedThe Georgia factory is expected to produce 200,000 SUVs annually.US Top News and Analysis: “Audi, plans to build an assembly plant in Georgia that will produce 200,000 SUVs annually, a government official told Reuters.”
SupportedThe Georgia plant is expected to assemble the Q7, Q8 and Q9, and be near where Trump plans to make the announcement.US Top News and Analysis: “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.”
Partly supportedAudi intends to build 25,000 vehicles in South Carolina at a separate Scout Motors plant under construction in Blythewood.US Top News and Analysis: “Audi is also expected to announce plans to ⁠build 25,000 vehicles in South Carolina, the official added. ... The vehicles will be assembled at VW's off-road brand Scout Motors' $2 billion plant under construction in Blythewood, South Carolina.”
Partly supportedTrump is expected to present the investment as evidence that his trade policies are working.US Top News and Analysis: “Georgia has competitive midterm election races for U.S. Senate and governor and Trump is eager to make the case that his auto tariffs are helping the U.S. economy.”
Partly supportedCritics of the administration argue that its tariffs have raised vehicle prices.US Top News and Analysis: “Critics say the tariffs have ⁠led to higher vehicle prices.”
SupportedSome of the vehicles, currently built in Europe, would be exported.US Top News and Analysis: “Some of the vehicles, which are currently built in Europe, would be exported, the source added.”
SupportedAudi’s US sales are down 16% this year.US Top News and Analysis: “Audi's U.S. sales are down 16% this year.”
Partly supportedAudi’s global sales are declining, including a 7% drop in the first half of 2026.US Top News and Analysis: “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.”
Partly supportedToyota said in July it would spend $3.6 billion on a Texas truck assembly expansion, shifting production from Mexico.US Top News and Analysis: “In July, Toyota Motor said it would spend $3.6 billion to build a 2.5-million-square-foot (232,000-square-meter) truck assembly line at its San Antonio, Texas, manufacturing campus and shift some truck production from Mexico to the U.S.”
Partly supportedHonda may build a US plant, but only if the USMCA is extended.US Top News and Analysis: “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.”
Partly supportedHyundai has signaled it would unlock $20 billion in US investment if given USMCA certainty.US Top News and Analysis: “Hyundai said last year ‌if it had certainty about USMCA it "would immediately unlock over $20 billion in new American investments."”