Volkswagen is close to securing a US tariff deal, CEO Oliver Blume said, as the company targets the affordable electric car market in Europe. Trump’s tariffs, combined with a weak market, have already cost the group “several billions.” Even with a proposed reduction from 27.5% to 15%, Blume called the tariffs a “burden.”
Volkswagen Plans US Investments
The company aims to invest heavily in the US and is in talks to secure a further tariff reduction. Blume also mentioned possible localisation of Audi production and expanded US exports.
Porsche and Market Challenges
Porsche is especially affected, with tariffs and a weak Chinese market squeezing profits. Blume revealed the situation could cost “several billion euros” this year.
Affordable Electric Cars
Volkswagen unveiled a concept for a small electric car to capture a fifth of Europe’s compact EV market, emphasizing “e-mobility for everyone at an attractive price.”
Industry Disruption
Trump’s trade war has impacted the wider auto industry. In the UK, Lotus and Jaguar Land Rover are cutting jobs due to tariff-related uncertainty, while other manufacturers face market and operational challenges.
