Volkswagen is getting closer to striking a big deal with the U.S. government that could reshape how the German carmaker does business in America.
CEO Oliver Blume told Reuters during the Munich auto show that talks with Washington are “very positive,” with VW exploring major investments in the U.S.—including the possibility of building a new Audi plant. The move would create local jobs, strengthen supply chains, and help the company ease the sting of steep import tariffs.
Right now, European carmakers face a 15% tariff when shipping cars into the U.S., while American industrial goods flow into Europe tariff-free. On top of that, certain U.S. auto import duties—currently at 27.5%—have already cost VW billions this year, especially since premium brands like Audi and Porsche don’t yet have plants in America.
Blume stressed that Volkswagen needs answers soon: “We need to take decisions right now for localising our business there,” he said.
Like other automakers, VW is waiting for the U.S. to lower tariffs to 15%—a change President Donald Trump’s administration has promised. Until then, Porsche in particular is feeling the squeeze, caught between high tariffs in the U.S. and slowing demand in China.
Blume also addressed ongoing criticism over his dual role as CEO of both Volkswagen and Porsche. He admitted the arrangement isn’t permanent and said it’s still undecided which position he might eventually step away from. Photo by Vanellus, Wikimedia commons.
