Volkswagen Plans Massive US Investment Amid Tariff Talks

Volkswagen, Europe's largest industrial group, is engaging in direct, constructive talks with the U.S. government over import tariffs and plans to make substantial investments in the United States to mitigate the impact of President Donald Trump's 25% auto import tariffs. CEO Oliver Blume has personally met with U.S. Commerce Secretary Howard Lutnick and emphasized the company's commitment to a growth strategy that includes building on its partnership with American electric vehicle maker Rivian through further, massive investments. Volkswagen currently employs over 20,000 people directly and over 55,000 indirectly in the U.S., and the company hopes these investments will be taken into account in tariff negotiations, which are expected to continue alongside broader EU-U.S. trade discussions. The talks reflect Volkswagen's strategy to not rely solely on European Union negotiations but to seek solutions directly with Washington, aiming for tariff relief or reduction. The U.S. administration, supported by unions like the United Auto Workers, encourages domestic investment as a way to avoid tariffs, a position echoed by Volkswagen's approach. While no timeline for a resolution has been confirmed, Volkswagen remains optimistic about reaching a deal that benefits both sides.