Foreign trade
VW is negotiating with the US government for tariffs
US President Trump covers trading partners with high tariffs. This also hits car manufacturers like VW. CEO Blume signals willingness to invest in the United States.
Because of the new US inventory tariffs on cars in the USA, the Volkswagen Group is negotiating a possible accommodation with the government of President Donald Trump. In an interview with the “Frankfurter Allgemeine Zeitung” (FAZ), CEO Oliver Blume, for example, promised a production of the Audi brand in the USA. “We have a forward strategy with exciting project rates, tailor-made and attractive for the US market. We are throwing this into the balance. Current conversations are currently underway with the US government,” said Blume.
The CEO told the newspaper that he sees industry as part of the solution in the customs dispute. “Our biggest lever is to invest in the regions of the world, to ensure employment and to close partnerships.” North America is one of the most important growth regions for the VW group, said Blume. Volkswagen wanted to “do the most possible” to act as a reliable investor and partner in the United States.
“We want to continue expanding. The Volkswagen brand has opportunities in the product portfolio. For Audi, US production would be a development step as part of our strategy,” said Blume. However, he ruled out a US production by the Porsche brand due to small quantities.
Customs exceptions for car manufacturers?
Car manufacturers in Germany and Europe shaked the announcement of new tariffs from the United States. The United States are the most important export market for the German auto industry.
Last year, the core brand Volkswagen alone sold almost 380,000 new cars in the United States. That corresponded to eight percent of the global sales. The best-selling model was the SUV Atlas only offered in North America, which VW produces in his US plant in Chattanooga (Tennessee). Almost two thirds of the VW vehicles sold in the USA were imported, most of them from Mexico. The Audi brand serves the US market alone with an import car.
According to US President Trump, the aim of the tariffs is to bring more production to the United States. However, experts point out that the construction of factories takes years – while price increases through tariffs can quickly hit consumers. A few days ago, Trump car builder, at least temporarily applicable exceptions from the tariffs. Car companies needed a little more time to switch their supply chains to part production in the USA, he said.
dpa
Source: Stern
