VW CEO: Without Lower Tariffs, The US Factory Will Not Proceed

“The president is aware of our investment plans and strategy. So far, the discussions with the Minister of Trade and the president have not yet yielded the results we need for a follow-up decision,” Blume told the German business newspaper regarding negotiations with the administration in Washington. “If the burden of import duties remains unchanged, a major investment will be unfinanceable. We need cost reductions in the short term and reliable framework conditions in the long term.”

Subsidiary brand Audi has been planning to build a new factory in the US since 2023. At the time, new subsidies made such a decision attractive. But tariffs imposed by the Trump administration cost Volkswagen €2.1 billion in the first nine months of last year, Blume said.

In the same interview, he indicated that Europe should refrain from protectionist measures to protect its own industry. Blume favors scrapping regulations, concluding new trade agreements, and providing financial support for key technologies. “We need to look at ourselves and see what we can do better.”

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