Volkswagen CEO Oliver Blume said the company is close to a US tariff deal as it aims to expand in the electric vehicle market. The German group, which owns Audi, Seat, and Porsche, has lost “several billions” due to Trump-era tariffs. Even with a reduction from 27.5% to 15%, Blume called the tariffs a “burden.”
Volkswagen Plans Major US Investments
The company plans significant US investments to secure a lower tariff rate and may localise Audi production. Blume said talks with the US government are ongoing and a solution is expected soon.
Porsche Hit Hard
Porsche is particularly affected as most US-bound cars are made in Germany. Blume also unveiled a small, affordable electric car targeting a fifth of Europe’s compact EV market.
Industry Disruption
Trump’s trade war has shaken the auto sector. BMW is preparing a China-made iX3 for 2026, while UK manufacturers Lotus and Jaguar Land Rover plan job cuts linked to tariffs and market uncertainty.
