Volkswagen’s chief executive Oliver Blume has publicly criticized the current trade relationship between the European Union and the United States, stating that US-imposed tariffs have cost the automotive giant billions of euros. Speaking at the IAA Munich car show, Blume described the arrangement as “asymmetric,” highlighting that while the EU imposes no tariffs on US car imports, the US levies a 15% duty on vehicles imported from the EU. This disparity has placed European automakers like Volkswagen at a significant competitive disadvantage in one of the world’s largest automotive markets.
Blume expressed dissatisfaction with the deal negotiated between Brussels and Washington, emphasizing that Volkswagen did not support the terms. The tariffs have particularly impacted the company’s luxury brands, Audi and Porsche, which lack production plants in the US and are therefore subject to the full brunt of the import duties. As a result, the Volkswagen Group has incurred losses amounting to “several billions of euros so far this year,” according to Blume. In response, the company is accelerating plans to localize production in the US, including investments in new factories and supply chain infrastructure, to mitigate tariff costs and strengthen its market presence.
The CEO noted that discussions with the US government have been “very positive,” signaling a strategic shift toward expanding Volkswagen’s footprint in North America. This move aligns with broader industry trends, as global automakers increasingly seek to establish local manufacturing hubs to avoid trade barriers and capitalize on regional demand. By boosting local employment and enhancing its US supply chain, Volkswagen aims not only to bypass tariffs but also to position itself for long-term growth in the competitive American automotive landscape.