Volkswagen CEO Oliver Blume said the company is close to a US tariff deal as it targets affordable electric cars in Europe. Trump-era tariffs and a turbulent market have already cost the group “several billions.” Even with a planned reduction from 27.5% to 15%, Blume said the tariffs remain a burden.
Volkswagen Plans US Investments
The company plans major US investments to secure a further tariff reduction and may localise Audi production. Blume emphasized ongoing talks with the US government to find a solution.
Porsche Hit Hard
Porsche faces heavy impact from tariffs and weak Chinese demand, as most US-bound models are manufactured in Germany. Blume called it a “sandwich” affecting profits by billions.
Electric Car Plans
Volkswagen unveiled a small, affordable electric car aimed at capturing a fifth of Europe’s compact EV market.
Industry-Wide Effects
Trump’s trade war has affected the wider auto industry. In the UK, Lotus will cut 550 jobs, Jaguar Land Rover up to 500, and Volkswagen faces challenges from cyber disruptions. BMW plans a localised Chinese iX3 SUV for 2026.
