Volkswagen is close to securing a tariff deal with the US, CEO Oliver Blume said, as the German carmaker, which also owns Audi, Seat, and Porsche, seeks to expand its affordable electric vehicle market in Europe. Trump-era tariffs, combined with a weak market, have already cost the company “several billions.” Even with a reduction from 27.5% to 15%, Blume called the tariffs a “burden.”
Volkswagen Plans US Investments
Volkswagen plans major US investments to negotiate further tariff relief and may localise Audi production. Blume described Porsche as caught in a “sandwich” of tariffs and a weak Chinese market, with billions lost this year.
Affordable Electric Car Concept
At a Munich trade show, Volkswagen unveiled a new small electric car aimed at capturing a fifth of Europe’s compact EV market.
Industry-Wide Disruption
Trump’s tariffs have also affected rivals: BMW will produce a Chinese version of its iX3 SUV in 2026, while Lotus and Jaguar Land Rover plan significant UK job cuts due to market uncertainty.
