Volkswagen CEO Oliver Blume said the carmaker is close to a US tariff deal as it targets the European electric vehicle market. Trump’s tariffs, combined with a weak market, have already cost the company “several billions.” Even with a planned reduction from 27.5% to 15%, Blume called the tariffs a “burden for Volkswagen Group.”
Volkswagen Plans US Investments
The group plans major US investments to secure a lower tariff deal and may localise Audi production. Blume said talks with the US government are ongoing to reach a quick solution.
Porsche Hit Hard
Porsche faces heavy losses due to tariffs and weak demand in China, as most US-bound cars are manufactured in Germany.
Electric Cars and BMW
Volkswagen revealed a new small electric vehicle aimed at capturing a fifth of Europe’s compact EV market. BMW will launch a Chinese-made iX3 SUV in 2026 with localised software.
Industry Disruption
Trump’s trade war has affected the wider auto industry. Lotus plans 550 job cuts, Jaguar Land Rover up to 500, and UK manufacturers are also dealing with a cyber-attack.
