Kathmandu. German carmaker Audi plans to invest $4.2 billion to build its first factory in the United States, US President Donald Trump has announced. The factory will produce 200,000 vehicles annually.

Confirming the investment, Audi said in a press release that the proposed factory will create around 4,500 jobs.

Speaking at a rally 10 days before the November 3 midterm elections, Trump said he was “excited” to announce a big investment in the automobile manufacturing sector in the state of Georgia on Saturday.

He said Audi had pledged to invest $4.2 billion near the city of Macon, Georgia, and would start production next month and produce two million cars a year.

However, Audi, part of the Volkswagen Group, said in a statement that construction of the plant would begin next year and production would begin in the early 2030s.

The company said the investment reflects its long-term commitment to the United States. It also aims to develop North America as the third major base of its global manufacturing network after Europe and China.

German auto giant Volkswagen Group is facing challenges including U.S. tariffs, competition from Chinese manufacturers and volatile demand in Europe.

About 50,000 jobs will be cut across 10 brands under the Volkswagen Group, especially Volkswagen, Audi and Porsche. The company said it may have to cut an additional 50,000 jobs around the world to reduce costs.