Volkswagen is close to a tariff deal with the US, CEO Oliver Blume said, as the company faces heavy costs from Donald Trump’s 27.5% tariffs, reduced to 15%. The levies, combined with a turbulent market, have already cost “several billions.” Volkswagen plans major US investments and may localise Audi production to ease the burden.
Porsche Hit Hard by Tariffs and Weak China Market
Blume highlighted that Porsche is especially affected, as most US-bound cars are made in Germany. “It’s several billion euros on our balance sheet that this situation costs this year,” he said.
Affordable Electric Cars and BMW Moves
Volkswagen unveiled a concept for a small electric vehicle aimed at capturing a fifth of Europe’s compact EV market. BMW is preparing a Chinese version of its iX3 SUV for 2026 with localised software.
Trade War Disrupts Industry
Trump’s tariffs have caused turmoil across the sector. UK-based Lotus plans to cut 550 jobs, and Jaguar Land Rover will axe up to 500 management positions, both partly due to tariff uncertainty.
