VW CEO Blume strikes a deal with Trump
U.S.-Germany Trade Negotiations: Volkswagen Seeks Tariff Relief from Trump Administration
Volkswagen is engaging in negotiations with the U.S. trade ministry to potentially secure tariff concessions, according to sources familiar with the talks. The German automaker has been conducting "constructive" discussions, with CEO Oliver Blume stressing the company's intent to continue investing in the U.S.
Blume, also CEO of the listed VW subsidiary Porsche, has engaged in regular discussions with the U.S. trade minister, but the talks ultimately pass through the desk of President Donald Trump. When asked about the substance of the negotiations, Blume stated, "The Volkswagen Group wants to continue investing in the U.S."
The company, which already employs over 20,000 people directly and 55,000 indirectly in the U.S., produces vehicles, school buses, and trucks and has a partnership with Rivian. Blume suggested that these investments could potentially play a role in the decision regarding tariffs.
The principle being advocated by Blume is that those who invest in a country should benefit from favorable business conditions. However, it remains uncertain whether these investments will secure an exemption from the 25% tariff on European car imports, despite a recent court ruling suspending these tariffs. The U.S. government has appealed the ruling, leaving the situation unclear.
Volkswagen, along with other German automakers, is reportedly hoping for a deal with the U.S. government by June. The potential agreement could involve tariff relief in exchange for billions in U.S. investments, although specifics remain unclear.
Blume does not view his dual role as CEO of both Volkswagen and Porsche as permanent, stating, "The role of CEO of Volkswagen and Porsche is not set in stone for eternity." He suggested that at some point in the future, the company may choose to focus on one role.
Source: ntv.de, chr/rts
- Volkswagen
- Tariffs
- Donald Trump
- The employment policy of Volkswagen could be influenced by the outcome of the negotiations with the Trump Administration regarding tariff relief, as the carmaker plans to invest billions more in the U.S.
- The community policy and general-news topics are intertwined in the U.S.-Germany trade negotiations, with Volkswagen's discussions with the Trump Administration concerning tariffs on European car imports also involving finance and politics, as the U.S. government appeals a court ruling that suspended these tariffs.
