World's second largest carmaker to move manufacturing of luxury brand to US

The second largest carmaker in the world will be relocating the manufacturing of its luxury brand to the United States after President Donald Trump has been encouraging car companies to do business in the US.

Volkswagen Group, which is the second largest car manufacturer in the world, will be joining a number of other car manufacturers in moving production to the United States for the German automaker's luxury brand, Audi, per the Daily Mail.

A spokesman for the company told the outlet, "We want to localize more strongly in the USA. To this end, we are currently examining various scenarios. We are confident that we will make a decision on this in consultation with the Volkswagen Group before the end of this year as to what this will look like in concrete terms."

During a recent earnings call for Audi, CFO of the brand Jürgen Rittersberger said that the car company is planning on creating 10 new models in the US and locations for production will be made public next year. There are around three locations where Audi has scouted out for production, according to a report from Automobilwoche.

One location that is primarily being considered is in Chattanooga, Tennessee. Parent company Volkswagen already builds its Atlas as well as the Atlas Sport at the Chattanooga location. Another site under consideration is in South Carolina, according to the report. A third location has not been disclosed.

The move appears to come as a response to Trump’s tariff policy, which he has used to leverage investment in the United States. Other car companies that have made moves to produce in the US include Stellantis as well as Hyundai.

Other companies as well as countries have similarly invested in the United States as Trump has taken the White House. Trump also announced Thursday that the US and UK brokered a trade deal that he said would open up millions of dollars worth of exports of American-made goods to the UK market.