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Audi targets annual capacity of 200,000 vehicles in Georgia factory plan

Audi plans an assembly plant in the US state of Georgia with capacity for 200,000 sport utility vehicles a year. The project emerged as Donald Trump pressed carmakers to produce more in the United States. A US official also described additional Audi production in South Carolina, while the company’s US sales have declined this year.

Economics & Markets··Morning
Unfinished silver SUV bodies stand between blue robot arms along a bright automotive assembly line.

Georgia plant would build 200,000 SUVs a year

Audi, Volkswagen’s premium car brand, plans a new assembly factory in the US state of Georgia. The proposal described by a US government official envisages annual capacity for 200,000 sport utility vehicles. Donald Trump subsequently announced at a campaign rally that Audi would build a factory in the state.[1], [2]

The official identified the Q7, Q8 and Q9 as the models envisaged for the Georgia plant. Trump’s rally took place in Perry, near the proposed location. His administration has urged vehicle manufacturers to increase US production while raising tariffs on imported vehicles and parts.[1]

South Carolina also features in the production plan

The same official described plans for another 25,000 vehicles in South Carolina. Assembly would take place at the factory being built in Blythewood by Scout Motors, Volkswagen’s off-road vehicle brand. Some vehicles now produced in Europe would be exported from the United States. Audi declined to comment when Reuters sought its response to the plans.[1]

Sales declines accompany the US expansion

Audi’s US sales have fallen 16 per cent this year. Worldwide sales declined 7 per cent in the first half, following two consecutive years of contraction. Competition in China and US tariffs have affected demand. The proposed capacity additions arrive as the manufacturer deals with those weaker sales in its existing business.[1]

References

  1. News sourceReutersAudi plans Georgia plant with annual capacity of 200,000 vehicles, Reuters reports↩1↩2↩3↩4
  2. News sourceAssociated PressTrump announces an Audi factory in Georgia↩
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