Published by Global Banking & Finance Review®
Posted on September 8, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleVolkswagen is negotiating a major investment deal with the US to mitigate high tariffs and expand its market presence.
By Christoph Steitz and Louisa Off
MUNICH (Reuters) - Volkswagen was in advanced talks with the U.S. government over substantial investments in the world's second-largest auto market, where tariffs have cost Europe's top carmaker billions of euros so far this year.
Chief Executive Oliver Blume told Reuters that Volkswagen did not appreciate an "assymmetric" deal between Brussels and Washington that foresees tariffs on EU auto imports of 15% and no tariffs for U.S. industrial goods imports into Europe.
"Therefore, we are counting on our plan on investments in the U.S.," which would boost local employment and VW's supply chain, Blume said at the IAA Munich car show, adding talks with the U.S. government were "very positive."
Volkswagen is considering substantial investments to expand its U.S. business, including a plant for its Audi brand, and has held talks about how Washington could lend support.
He hoped for a quick solution "because we need to take decisions right now for localising our business there," he said.
Volkswagen is trying to soften the blow from U.S. auto import tariffs of 27.5%, which Blume said have cost the carmaker several billions of euros so far this year, mostly due to its Audi and Porsche brands' lack of local plants.
Like its rivals, Volkswagen is waiting for current U.S. auto import tariffs to fall to 15%, something the U.S. administration under President Donald Trump has pledged to do.
Porsche was wedged in a "sandwich" between tariffs and a weak Chinese market more than any other automaker, said Blume, who is also CEO of the luxury sportscar maker.
Blume confirmed that his dual CEO role - which has drawn criticism from shareholders and unions - was not permanent, and that it was still open which of the two he might give up.
($1 = 0.8525 euros)
(Reporting by Christoph Steitz and Louisa Off; Additional reporting by Ayhan Uyanik; Editing by Friederike Heine, Emelia Sithole-Matarise and Bernadette Baum)
Volkswagen is in advanced talks with the U.S. government over substantial investments in the U.S. auto market, including plans for a new plant for its Audi brand.
U.S. auto import tariffs of 27.5% have cost Volkswagen several billions of euros this year, particularly impacting its Audi and Porsche brands.
CEO Oliver Blume hopes for a quick resolution to the investment talks, as immediate decisions are needed for localizing Volkswagen's business in the U.S.
The U.S. administration has pledged to reduce tariffs on EU auto imports from 27.5% to 15%, which Volkswagen and its rivals are eagerly awaiting.
Blume mentioned that Porsche is caught between high tariffs and a weak Chinese market, which has significantly impacted its performance.
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