Volkswagen to build $4bn Audi SUV factory in US despite job cuts at home

Volkswagen is planning to invest $4 billion (£3 billion) to construct its first US factory in Macon, Georgia, despite the company facing job cuts at home. This move comes amid the negative effects of President Donald Trump's tariffs, intense competition from China, and the company's shift towards electric vehicles (EVs).

At a campaign rally, Volkswagen's CEO, Gernot Döllner, joined Trump and announced the creation of 4,500 jobs in the US. The factory will focus on producing the Q7, Q8, and Q9 SUVs, replacing some production from Slovakia. Audi, Volkswagen's premium brand, aims to manufacture 200,000 SUVs at the US facility.

However, Trump's tariffs have cost Volkswagen up to €5 billion (£4.2 billion) annually, contributing to the company's struggle with low vehicle and parts employment since his presidency began. The tariffs and Trump's efforts to reduce battery electric vehicles have also impacted Audi, causing it to shift some production of its affordable models from Mexico to the US.

Volkswagen is currently facing a challenging situation in Germany, where it is planning to cut around 100,000 jobs and close factories due to intense competition from Chinese automakers and the need to invest in EV production. Döllner accepted an invitation to speak at Trump's rally, emphasizing the company's long-term investment in the American market.