Volkswagen shifts gears: New investments to counter US tariffs
The turmoil around tariffs has led the German corporation to plan on moving part of its business across the ocean. The corporation's CEO, Oliver Blume, held talks with American authorities, which he described as "fair and constructive."
The increase in U.S. tariffs on products imported from Europe has prompted many European manufacturers to consider relocating part of their production to the U.S. One of these companies is Volkswagen, which has just announced significant investments across the ocean.
According to Reuters, German car manufacturers, including Volkswagen, have been in discussions with Washington about a possible tariff agreement, attempting to leverage their U.S. investments and exports to mitigate the impact.
The head of the corporation, Oliver Blume, stated that Volkswagen's main contact in Washington is U.S. Commerce Secretary Howard Lutnick. He added that he agreed to keep all details of the discussions confidential.
Unofficially, it is said that existing Volkswagen factories in the U.S. could be joined by Audi production facilities, allowing the Ingolstadt brand to avoid higher tariff rates.
Blume, as quoted by Reuters, said that The Volkswagen Group already employs over 20,000 people directly and over 55,000 indirectly in the United States and emphasized an investment of $5.8 billion in the American company Rivian.
These investments should be taken into account when making decisions about tariffs, Blume added, expressing hope that Brussels and Washington will reach a broad agreement for all industries.
