A $4bn plant and 4,500 jobs

Audi, Volkswagen's most important premium brand, says it will spend $4bn (£3bn) on its first Audi US factory, aiming to produce 200,000 SUVs a year at the site and create 4,500 jobs.

• The Macon, Georgia plant will build the Q7, Q8 and Q9 SUVs
• Some production will shift from Bratislava in Slovakia
• The Q9 is planned as Audi's largest-ever SUV, designed with the American market in mind

Announced on stage with Trump

Gernot Döllner joined Trump on stage at a rally on Saturday night to announce the factory, an unusual move by a big European brand just days before the US midterm elections. The Republican party is trying to retain control of both houses of Congress but is polling poorly. Döllner said he accepted the invitation to speak out of respect for the US.

Tariffs pushing production to the US

Audi is squeezed by Trump's 15% tariffs on imports from the EU and by the president's efforts to cut sales of battery electric vehicles. Its parent company Volkswagen says the tariffs cost it up to €5bn (£4.2bn) a year, before the impact of lower sales.

This month Volkswagen said it was struggling with "continued high pressure from import tariffs". In July, its CEO Oliver Blume told investors: "US tariffs create a significant burden and restrict international trade". The group adds that US demand remains for Audi's large petrol SUVs.

Investment abroad, cuts at home

The move follows Volkswagen's shift of some production of its cheapest cars, such as the Jetta saloon and Taos SUV, from Mexico to the US.

At home, the group has started to cut as many as 100,000 jobs and close factories, blaming intense competition from Chinese carmakers, the tariffs and a need to invest heavily in the shift to EVs. US vehicle and parts employment has fallen since Trump took office last year. The Macon plant is planned to build the Q9, Audi's largest-ever SUV, with the American market in mind.