Audi’s parent company, Volkswagen, has been struggling with increasingly strong competition from China and US import tariffs for some time. In return for the investment in the US, Volkswagen and the Trump administration will negotiate reduced tariffs, a US source told Bloomberg.
Construction of the new factory is planned to start next year, and the facility is expected to create approximately 4,500 jobs.
"The planned investment aims to mark a long-term commitment to the US and to establish North America as a third important pillar in Audi’s global production network, alongside Europe and China," the company said in a statement.
The Volkswagen Group has previously announced that it will reduce its workforce by at least 50,000 people.