Washington. American President Donald Trump has announced that German car manufacturer Audi plans to invest 4.2 billion US dollars to build its first factory in the United States. The factory will produce two lakh vehicles annually.
Audi confirmed the investment through a statement and said that the proposed factory will create around 4,500 jobs.
At a campaign rally held 10 days before the November 3 mid-term elections in the US, Trump said on Saturday that he was excited to announce a major investment in the automobile manufacturing sector in the state of Georgia.
He mentioned that Audi has committed to invest 4.2 billion dollars near the city of Macon, Georgia, and said that the construction of the factory will start from next month and two hundred thousand cars will be produced there annually.
However, according to a statement issued by Audi, which is part of the Volkswagen Group, construction of the factory will begin next year and production will begin in the early 2030s.
The company said that this investment shows its long-term commitment with America. In addition, it aims to develop North America as the third major base of its global production network after Europe and China.
German auto industry leader Volkswagen Group is facing challenges including US tariffs, competition from Chinese manufacturers and volatile demand in Europe.
It has been agreed to cut around 50,000 jobs across 10 brands within the Volkswagen Group, notably Volkswagen, Audi and Porsche. According to the company, there may be an additional 50,000 job cuts worldwide to reduce costs.