by Volkswagen increases investments in the US due to tariffs
Automaker Volkswagen plans significant new investments in the US, hoping this will help mitigate the impact of import tariffs. The company is facing financial difficulties due to a 25% duty on cars imported to the US and is seeking ways to resolve this issue.
Volkswagen CEO Oliver Blume stated that he has direct contact with the US Secretary of Commerce and recently visited Washington for negotiations. He emphasized that the company has already invested $5.8 billion in Rivian and is ready for further investments.
“We could develop this with additional large-scale investments… We have a growth strategy,” said Blume.
Complex negotiations and financial challenges
Blume also noted that tariff issues are being discussed at the highest level, including with the US President. Although the European Union is trying to find a compromise, Volkswagen is not relying solely on EU institutions and is conducting its own negotiations.
The situation is further complicated by the fact that the company is already facing stiff competition from China and reports a 30% drop in profits. As part of optimization efforts, Volkswagen plans to cut 35,000 jobs by 2030.
Recent events demonstrate how global trade conflicts are affecting large corporations. Despite its efforts, Volkswagen has not yet been able to fully overcome the negative impact of tariffs, which could influence its future strategy in North America.
