Automotive industry: VW relies on strong US growth despite Trump

The Volkswagen Group continues to focus on strong growth in the USA. CEO Oliver Blume does not see this course at risk when US President Donald Trump takes office.

“The North American market plays a big role for us. It is a central part of our growth strategy,” said the boss of Europe’s largest car manufacturer to the “Braunschweiger Zeitung/Wolfsburger Nachrichten”.

By strengthening its US business, Volkswagen wants to become more independent from the Chinese market. “I think it is extremely important to have a strong foothold in all regions in order to make the Volkswagen Group’s business more flexible and robust,” said Blume. The model for this strategy is the corporate subsidiary Porsche.

Blume refers to strong commitment

The group is investing $15 billion in the USA and $5 billion in Canada. This is an “extremely strong statement for North America,” emphasized Blume. Companies that are so committed should benefit from low tariffs. Trump has announced high tariffs on imports from Mexico and Canada. VW operates or builds production facilities there.

“We will work with the new US administration in a tried and tested manner,” said Blume. You can see that many US companies also have close roots in Canada and Mexico. “In Donald Trump’s first term in office, we met an economically minded president who positioned himself, polarized and then consistently implemented it.”

The CEO announced that the use of range extenders would also be examined for volume models, including the VW brand e-models. These are small combustion engines that charge the battery of electric cars and thus increase the range.

This technology will first be used at the US subsidiary Scout. “The range extender is a good argument for removing range anxiety for customers in the transition phase to e-mobility and making it easier for them to get started,” said Blume.