Volkswagen is currently engaged in advanced discussions with the US government regarding potential investments in the country, as reported by Reuters.
The discussions come at a crucial time as the European automotive giant grapples with the financial repercussions of tariffs.
According to the report, Volkswagen’s CEO, Oliver Blume, has expressed his dissatisfaction with the existing trade agreement between the EU and the US, labeling it as “asymmetric.”
The current deal imposes a 15% tariff on EU auto imports into the US while allowing US industrial goods to enter Europe tariff-free.
Blume is advocating for a more balanced trade environment and is exploring potential investments, including the establishment of a new plant for the Audi brand, to bolster Volkswagen’s operations in the US.
He also stressed the urgency of making decisions to localize the company’s business in the US.
Volkswagen is actively seeking ways to mitigate the impact of the US auto import tariffs, which have particularly impacted its Audi and Porsche brands due to the absence of local manufacturing facilities.
While Volkswagen and its competitors await a reduction in US auto import tariffs to 15%—a promise made by the Trump administration—Blume highlighted the strain on Porsche, caught between the tariffs and a challenging Chinese market, according to Reuters.
Amidst these strategic discussions, Blume confirmed that his concurrent role as CEO of both Volkswagen and Porsche is not intended to be permanent, acknowledging concerns from shareholders and unions.
The decision regarding which position he will eventually step down from remains undecided.
Recent calls from Volkswagen’s works council head, Daniela Cavallo, have intensified for Blume to step down from one of his dual roles.
Volkswagen’s financial performance reflects the pressures it faces, with first-quarter earnings significantly below market expectations due to EU carbon emissions penalties, resulting in nearly a 40% shortfall from market projections.
Additionally, the Volkswagen Group reported a 33% decline in operating profit to €6.7bn ($7.88bn) for the first half of 2025.
In light of trade developments, US President Donald Trump recently signed an executive order aimed at reducing tariffs on imported Japanese automobiles and other products.
