Volkswagen is close to securing a US tariff deal, CEO Oliver Blume said, as the company aims to expand affordable electric vehicles in Europe. Trump’s trade tariffs, combined with market turbulence, have already cost the group “several billions.” Even the reduced 15% rate remains a burden, Blume added.
Volkswagen Plans US Investments
The company plans “massive” US investments and may localize Audi production to reduce tariff impact. Blume highlighted Porsche’s struggles due to tariffs and a weak Chinese market, noting billions lost this year.
Affordable EVs and BMW Plans
At a Munich trade show, Volkswagen unveiled a small, affordable electric car to capture 20% of Europe’s compact EV market. BMW will release a China-made iX3 in 2026 with localized software.
Industry Disruption
Trump’s tariffs have hit the auto sector globally. In the UK, Lotus plans 550 job cuts, Jaguar Land Rover up to 500 management layoffs, and broader disruption continues, including cyber-attack impacts.
