German carmaker Audi plans to invest approximately $4bn to set up its first US manufacturing facility at the Middle Georgia Mega Site, an industrial property in Peach County, Georgia.

Construction of the facility is scheduled to begin in 2027, with vehicle production set to commence in the early 2030s.

The site is being planned for an annual output of up to 200,000 vehicles, focusing on premium SUVs for the North American market.

Audi noted that the selected location provides adequate acreage and infrastructure to support potential future expansion.

It identified the US as the second-largest premium vehicle market globally, stating that the project forms part of a strategy to establish North America as a third core production pillar alongside its existing manufacturing operations in Europe and China.

Georgia Governor Brian P Kemp said: “Audi’s decision to establish its first American manufacturing plant here is another defining moment in that journey. Together, we have an opportunity to create lasting economic prosperity, open new doors for our communities and help shape the next generation of American automotive manufacturing.”

The investment is projected to generate around 4,500 direct jobs, as well as supply chain, logistics and industrial training opportunities throughout the region.

Domestic assembly in the US is intended to reduce the company’s exposure to trade tariffs and foreign-exchange volatility, whilst adapting output directly to regional consumer demand.

The company confirmed that Germany and Europe will continue to serve as its primary engineering and industrial base, with the North American site designed to complement its wider global network.

Audi management board chairman Gernot Döllner added: “We have much greater ambitions for Audi in America. The US is one of the world's most important premium markets, and we have not yet realised our full potential.

"We are determined to change that – with premium products, a stronger brand and a competitive local production base. This is about building a stronger Audi business in America – not only about building a factory.”

The announcement comes after Audi last month unveiled the A2 e-tron, an all-electric compact car that the German manufacturer describes as the “most efficient model” it has built.