Newscasts - Volkswagen in advanced talks with US over investment deal

Porsche Automobil Holding SE

08/09/2025 14:55

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Source: 'Reuters - Business videos'

Description: 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. Ciara Lee reports.

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Video Transcript:

Volkswagen was in advanced talks with the US government over substantial investments in the world's second largest auto market. Chief Executive Oliver Blume told Reuters VW did not appreciate an asymmetric deal between Brussels and Washington. That deal foresees tariffs on EU auto imports of 15% and no tariffs for US industrial goods imports into Europe. Speaking to Reuters at the IAA Munich car show, where VW had unveiled its new small electric SUV, Blume said the company was counting on an investment plan in the US, adding that talks with the US government were very positive. VW is considering substantial investments to expand its US business, including a plant for its Audi brand. And has held talks about how Washington could lend support. Volkswagen is trying to soften the blow from US auto import tariffs of 27.5%, which have cost the company billions of dollars.

Up to now it's several billion euros on our balance sheet this situation costs this year. But it's more important to what situation we will come in the future on the one hand side with the tariffs and maybe with a joint agreement based on our huge investments we could do in the US.

Like its rivals, VW is waiting for current US auto import tariffs to fall to 15%. Something the US Administration under Trump has pledged to do.