Volkswagen to Offer Investments to US to Ward off Tariffs
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WOLFSBURG, Germany — Volkswagen is offering to make large-scale investments in the United States to ward off high tariffs on its imported vehicles, according to chief executive Oliver Blume.
“The Volkswagen group aims to invest more in the U.S.,” Blume told Germany’s Süddeutsche Zeitung daily in remarks published on May 30. VW already employs more than 20,000 people in the U.S., who assemble cars, school buses and trucks.
VW is currently building a new plant for its Scout Motors, a U.S. startup founded in 2022. “We will build on this with further massive investments,” Blume said, adding that he expected this to play a key role in decisions on tariffs.
Talks to date have been primarily with U.S. Commerce Secretary Howard Lutnick, but the issues discussed also passed over President Donald Trump’s desk, Blume said.
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“We are so far having absolutely fair and constructive talks,” he said, without saying when he expected a conclusion. “I would of course like them to proceed quickly, but this depends on many factors, and I cannot promise anything,” Blume said.
Other German carmakers are also looking to hold talks on tariffs. BMW head Oliver Zipse told a recent shareholders meeting that long and strong engagement in the U.S. would help the company to be heard.
BMW operates its largest plant in the world in the U.S. and is reported to be the country’s largest automotive exporter.
Scout Motors' Traveler SUV. (Scout Motors)
Mercedes is also reported to be in talks with the U.S. administration.
At the beginning of April, Trump imposed additional tariffs of 25% on imported cars. While other tariffs were later suspended, those on cars remain in place.
The U.S. is the German automotive sector’s biggest foreign market, with almost 450,000 German-produced vehicles exported there in 2024, according to industry figures.
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