Volkswagen defies tariffs: Huge investments announced in the USA!

Volkswagen defies tariffs: Huge investments announced in the USA!

Amid ongoing uncertainty over US import tariffs, Volkswagen is going on the offensive and planning massive investments in the USA. These steps come against the background that US President Trump is sticking to the existing import tariffs for cars, which has led to a punitive tariff of 25 percent on car imports since April. CEO Oliver Blume has already confirmed the ongoing talks with the US government and described the talks with Trade Minister Howard Lutnick as “fair and constructive”. This initiative aims to strengthen Volkswagen's position in the American market while responding to the challenges arising from declining market shares in China. The shareholder reports that Volkswagen is negotiating in Washington to create jobs and invest billions of dollars.

Volkswagen already employs over 20,000 people in the US, and the number increases to over 55,000 when indirect employment is included. In addition to existing commitments, the automaker plans to make new major investments in the USA. This also includes the production of vehicles and school buses in North America as well as the construction of a new factory for the Scout brand. Last but not least, Volkswagen is investing $5.8 billion in Rivian, which is part of a comprehensive market adaptation strategy.

The impact of US tariff policy

According to the Association of German Mechanical and Plant Manufacturers (VDMA), the uncertainty surrounding the customs regulations has caused more damage than the tariffs themselves. Volkswagen is responding to this uncertain situation by proactively seeking a more stable relationship with the US government and expanding its investments in North America.

The coming months will be crucial in determining whether Volkswagen can further consolidate its market position in the USA. The negotiations in Washington are seen as an essential step to ensure access to the US market and to successfully realize the planned investments. The American auto industry is under pressure, and Volkswagen is trying to lead the way with these measures. Information about the negotiations with the US government and the additional investments is also included Manager Magazine to find.