Volkswagen CEO, Blume, proposes concession on tariffs to Trump
Volkswagen Aims to Secure Tariff Exemption through US Investments
In an ongoing bid to evade US import tariffs, Volkswagen (VW) has pledged to invest substantially in the United States. CEO Oliver Blume, in an interview with the Süddeutsche Zeitung, stated that the company has been in regular contact with the US Trade Minister, with the discussions potentially reaching President Trump's desk.
Blume underscored VW's commitment to further investing in the US, citing the creation of over 20,000 direct jobs and 55,000 indirect jobs, as well as the production of cars, school buses, and trucks. VW also partners with US company Rivian.
The VW Group CEO emphasized that the talks have been "fair" and "constructive," with the principle being that those who invest in a country should enjoy better conditions. Blume noted that the proposed solutions could extend to other auto manufacturers or German companies.
Three unnamed sources familiar with the discussions reported that Volkswagen, BMW, and Mercedes-Benz are negotiating with the US Trade Ministry for a mechanism to offset imports with US exports. If successful, these negotiations could lead to a deal in June 2025, potentially halting or reducing tariffs by July 2025.
Failure to secure tariff relief could result in continued margin pressure and damage to the company's reputation. While tariffs initially affected German automakers during the Trump administration, the current negotiations are being conducted with the US government under its current leadership.
CEO Blume also addressed his dual role as CEO of the listed VW subsidiary Porsche. He said that the positions of CEO for Volkswagen and Porsche are not set in stone, suggesting a possible future focus on one of the roles.
- Volkswagen (VW) is not only investing in the production of cars, school buses, and trucks in the US, but also in the employment policy, aiming to create over 20,000 direct jobs and 55,000 indirect jobs, potentially influencing the industry's finance sector and contributing to the local transportation scene.
- In their negotiations with the US Trade Ministry, Volkswagen, BMW, and Mercedes-Benz are seeking a mechanism that would offset imports with US exports, reflecting a business strategy to counterbalance tariffs and ensure better conditions for ongoing investments.
- As part of its community policy, Volkswagen Group CEO Oliver Blume emphasized fair and constructive discussions with the US government concerning tariff exemptions, suggesting potential benefits that could extend beyond the automotive industry and German companies, thus encouraging foreign investments in various industries.
