VW is investing billions in the United States, anticipating a significant return on its game-changing strategy. | Carscoops

VW is investing billions in the United States, anticipating a significant return on its game-changing strategy. | Carscoops

      Volkswagen is making significant investments in the United States while engaging with Washington to prevent harsh tariffs that jeopardize its future in the country.

      The automaker is hoping for a reduction of the 25% tax on vehicles imported into the US.

      Currently, VW is facing financial challenges and has recently announced a 30% decrease in profits.

      CEO Oliver Blume has mentioned that he has direct communication with the US Secretary of Commerce.

      Volkswagen intends to undertake substantial new investments in the US in response to tariffs imposed by the Trump administration. The major automobile manufacturer believes that increasing its investments in the US could help negotiate a more favorable arrangement regarding automotive-related tariffs, which are affecting both VW and other carmakers.

      Oliver Blume disclosed that he is in direct contact with US Commerce Secretary Howard Lutnick and has recently visited Washington for “fair, constructive discussions.” He noted that in efforts to mitigate the 25% tax on vehicles imported into the US, “the Volkswagen Group aims to invest further in the USA.”

      Blume did not detail the potential increase in investment amounts but did highlight the $5.8 billion investment made in Rivian, adding, “we could expand this with additional, significant investments… We have a growth strategy.”

      “Our main point of contact is the US secretary of commerce, but ultimately, the issues also need to go through the US president,” Blume stated. “So far, we’ve engaged in genuinely fair, constructive discussions. Naturally, many matters are complex, and we have agreed not to disclose any details. I will adhere to that.”

      Meanwhile, while EU officials strive to negotiate a deal that satisfies President Trump, Blume is reluctant to leave all negotiations to Brussels, as reported by The Guardian. Besides pursuing a resolution for Volkswagen, he aims for a wider agreement that benefits all sectors.

      The timing of the tariffs could not be worse for VW. The company has been struggling to adapt to heightened competition from China, and according to Blume, it has become complacent “for too long.” VW is planning to eliminate 35,000 jobs by 2030 and recently reported a 30% year-over-year decline in net profits.

VW is investing billions in the United States, anticipating a significant return on its game-changing strategy. | Carscoops VW is investing billions in the United States, anticipating a significant return on its game-changing strategy. | Carscoops VW is investing billions in the United States, anticipating a significant return on its game-changing strategy. | Carscoops

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VW is investing billions in the United States, anticipating a significant return on its game-changing strategy. | Carscoops

Volkswagen is making significant investments in the US while also advocating with Washington to prevent harsh tariffs that could jeopardize its future in America.