Volkswagen is holding “fair” and “constructive” talks with the USA authorities on tariffs and needs to make additional investments within the nation, CEO Oliver Blume advised German newspaper Sueddeutsche Zeitung.
A number of overseas firms have introduced new US investments in response to President Donald Trump’s import tariffs, however German carmakers have been extra cautious about committing extra assets to what’s their largest export market.
Volkswagen’s Audi model, which has no manufacturing in the USA, is planning to provide some fashions in there, though the model has mentioned that the plan pre-dates the Trump administration.
“So far, we have had absolutely fair, constructive discussions,” Blume advised the newspaper in an interview revealed on Friday. “I was in Washington myself and we have been in regular dialogue ever since.”
Blume, who additionally leads Porsche AG as CEO, mentioned Volkswagen’s predominant contact in Washington was US Commerce Secretary Howard Lutnick, including he had agreed to maintain any particulars of the discussions confidential.
Sources advised Reuters earlier this week that Germany’s carmakers, together with Volkswagen, have been in talks with Washington over a doable import tariff deal, searching for to make use of their US investments and exports as leverage to melt any blow.
Trump’s commerce struggle has value firms greater than $34 billion in misplaced gross sales and better prices, based on a Reuters evaluation of company disclosures, with firms pursuing numerous methods to manage.
Many of the tariffs have been blocked by a US commerce court docket this week, however a federal appeals court docket has briefly reinstated them to contemplate the Trump administration’s attraction of the decrease court docket’s ruling.
Requested what Blume was providing within the talks, which goal to scale back a 25% import levy applied earlier this yr, he mentioned: “The Volkswagen Group wants to invest further in the USA. We have a growth strategy.”
Blume mentioned the Volkswagen Group already employed over 20,000 individuals straight and over 55,000 individuals not directly in the USA, additionally singling out a $5.8 billion funding in US firm Rivian.
“We would build on this with further, massive investments,” Blume mentioned.
Such investments must be factored into any choices relating to tariffs, added Blume, who mentioned he hoped Brussels and Washington will attain a broad deal for all industries.
Blume prevented being drawn on a timeline on when a take care of Washington might be struck, when requested about BMW CEO Oliver Zipse’s optimistic evaluation that tariffs would seemingly fall from July.
“Of course, I also want it to happen quickly. But it depends on many factors and I can’t promise anything.”
