Volkswagen (VW) US CFO Arno Antlitz recently made some significant remarks regarding the company’s investments in the United States and how these should be considered in discussions about tariffs. During an appearance on Bloomberg Television, Antlitz emphasized that VW already feels like “an American company”, pointing to the substantial investments the automaker has made in the country.
One key issue that VW recently faced was the threat of 25% tariffs that could have impacted its operations in Mexico, where a significant portion of its North American production is based. Fortunately, the company managed to secure a one-month reprieve from these tariffs, allowing its operations to continue without disruption.
Antlitz highlighted VW’s major factory in Tennessee, which employs over 20,000 people and provides secure, well-paying jobs. The company is also in the process of building a new factory in South Carolina. When asked about the potential impact of 25% tariffs on VW’s US investments, Antlitz refrained from speculating but mentioned that the company has already implemented various initiatives in the US.
“We want to maintain our market share in Europe, where we hold a 25% market share, compete more aggressively in China by 2026/27, and expand our presence in the US. Our strategic capital allocation is aligned with these objectives, and we have a clear roadmap to support our growth in these key markets,” Antlitz explained.
The recent modifications made by US President Donald Trump to the 25% tariffs on Mexico and Canada have provided some relief to VW. The tariffs now exclude goods that comply with the US-Mexico-Canada Agreement (USMCA), a revised version of the North American Free Trade Agreement.
VW confirmed that its North American-assembled vehicles meet the USMCA rules of origin and are therefore exempt from the 25% tariffs. As a global automotive manufacturer, VW is closely monitoring developments in North America and assessing any potential impacts on the automotive industry and its operations as a result of the tariffs imposed on the USA, Canada, Mexico, and the EU.
Under the USMCA rules, vehicles with at least 75% of their parts originating from North America are eligible for exemption from tariffs. Antlitz’s comments have raised speculation about whether companies will leverage their existing investments in the US to negotiate tariff relief with the government.
Overall, VW’s commitment to its US operations and investments underscores the importance of considering these factors when discussing trade policies and tariffs. The company’s strategic approach to market expansion and growth in key regions like Europe, China, and the US reflects its long-term vision and commitment to sustainable success in the global automotive industry.
