Volkswagen is in advanced discussions with the US government regarding potential investments in the country, Reuters reported.
The discussions come as the European automotive giant grapples with the financial impact of tariffs.
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According to the report, Volkswagen’s CEO Oliver Blume expressed his dissatisfaction with the current trade agreement between the EU and the US, describing it as “asymmetric.”
The deal foresees a 15% tariff on EU auto imports into the US, while allowing US industrial goods to enter Europe tariff-free.
Blume is advocating for a more balanced trade environment and is exploring potential investments, including a new plant for the Audi brand, to strengthen Volkswagen’s US operations.
He also emphasised the need for immediate decisions to localise the company’s business in the US.
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By GlobalDataVolkswagen is currently attempting to mitigate the impact of the US auto import tariffs, which have affected its Audi and Porsche brands due to their absence of local manufacturing facilities.
While Volkswagen and its competitors await a reduction in US auto import tariffs to 15%—a promise made by the Trump administration—Blume highlighted the particular strain on Porsche, which is caught between the tariffs and a challenging Chinese market, according to Reuters.
Amidst these strategic discussions, Blume also confirmed that his concurrent role as CEO of both Volkswagen and Porsche is not intended to be permanent, acknowledging shareholder and union concerns.
The decision on which position he will eventually step down from remains undecided.
Recently, Volkswagen’s works council head Daniela Cavallo has intensified calls for Blume to step down from one of his dual roles.
Volkswagen’s financial performance reflects the pressures it faces, with first-quarter earnings significantly trailing market expectations due to EU carbon emissions penalties, resulting in a nearly 40% shortfall from market expectations.
Furthermore, the Volkswagen Group reported a 33% decline in operating profit to €6.7bn ($7.88bn) for the first half of 2025.
In a context of trade developments, US President Donald Trump recently signed an executive order aimed at reducing tariffs on imported Japanese automobiles and other products.
