VW Group offers US localisation in tariff negotiations
VW Group is in advanced talks with the US government about making substantial investments in the US, as part of its ongoing negotiations for favourable tariffs.
The carmaker’s CEO Oliver Blume said the deal between the US and EU is “asymmetric” and is “distorting the competition in Europe” in a recent interview with Bloomberg TV, and added that VW is counting on its own offer investing heavily in the US.
VW Group reported that the US tariffs caused a €1.3 billion ($1.5bn) hit to operating profit in the first half of 2025, with its Audi and Porsche divisions notably affected, experiencing profit drops of about 64% and 91% respectively. As a result, the two brands lowered their full-year margin forecast to 4–5% from 5.5–6.5%.
The OEM has been vocal about the impacts of the tariffs, taking part in a meeting with the European Commission alongside representatives from BMW and Stellantis which eventually lead to a proposal to introduce trade countermeasures against the US’ steel and aluminium tariffs (although the bloc then put a pause on this action in early August).
It suspended vehicle shipments from Mexico to the US in April when tariffs on automotive parts and vehicles came into effect, with its Audi division suspending exports to the US from Europe and Mexico.
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No formal, signed deal has yet been announced between
VW Group and the US administration. VW Group has been contacted for comment.
