- The automaker hopes to see Trump reduce the 25% levy on vehicles imported into the US.
- VW is in a difficult financial position at the moment, and recently reported a 30% drop in profits.
- CEO Oliver Blume has revealed he has a direct line to the US Secretary of Commerce.
Volkswagen is planning significant new investments in the United States in response to the Trump administration’s tariffs. The giant carmaker is hopeful that by investing more in the country, it will be able to iron out a deal to soften the blow of automotive-related tariffs that are hurting it, and pretty much every other automaker.
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The boss of VW, Oliver Blume, has revealed he has a direct line to US Commerce Secretary Howard Lutnick and was recently in Washington to have “fair, constructive discussions.” He added that as part of VW’s efforts to try and reduce the 25% levy on vehicles imported into the US, “the Volkswagen Group wants to invest further in the USA.”
Read: VW Freezes Prices Again But Trouble Is Just Around The Corner
Blume did not specify how much the company could up its investments by, but did highlight the $5.8 billion investment it’s made in Rivian, adding, “we could build on this with further, massive investments…We have a growth strategy.”
“Our primary contact is the US secretary of commerce, but ultimately, the issues also go through the US president’s desk,” Blume added. “So far, we’ve experienced absolutely fair, constructive discussions. Of course, many things are complex, and we’ve agreed not to share any content. I will stick to that.”
While officials from the European Union are trying to work out a deal that’ll please President Trump, Blume isn’t willing to leave all of the negotiations to Brussels alone, The Guardian reports. In addition to seeking a deal for Volkswagen itself, Blume wants to see a broader deal benefiting all industries.
The tariffs could not have come at a worse time for VW. The automaker has been struggling to respond to increased competition from China, and, according to Blume, has rested on its laurels “for too long.” VW plans to cut 35,000 jobs by 2030 and recently reported a 30% year-on-year drop in net profits.
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