Trump: Audi to invest US$4.2b in first US plant

WASHINGTON: President Donald Trump announced on Saturday that German automaker Audi planned to invest US$4.2 billion to build its first factory in the US that will produce 200,000 vehicles a year.

Audi said the plant would create about 4,500 jobs.

"I'm thrilled to announce a massive auto manufacturing investment in Georgia by a fantastic company," Trump said at a campaign rally.

The rally came 10 days before the Nov 3 midterm elections, which will determine control of the US Congress.

Audi, a subsidiary of Volkswagen, said construction was scheduled to begin next year and production in the early 2030s.

Audi said the investment would demonstrate its long-term commitment to the US and make North America a third major pillar of its global production network, alongside Europe and China.

Volkswagen has struggled with US tariffs, competition from Chinese manufacturers and uneven demand in Europe.

The Volkswagen Group has agreed to cut about 50,000 jobs, but the company has warned that a further 50,000 cuts could be needed worldwide to reduce costs.