Volkswagen Group proposes Americans-focused tariff adjustments in discussion phase
The Volkswagen Group, one of the world's leading automakers, is currently in negotiations with the US government to secure a contract that could ease the burden of high import duties. The talks come as a response to the significant impact US tariffs have had on the profits of the Audi and Porsche divisions, with profit drops of approximately 64% and 91% respectively.
According to reports, the US tariffs caused a €1.3 billion ($1.5bn) hit to Volkswagen Group's operating profit in the first half of 2025. In response, Audi has suspended exports to the US from Europe and Mexico, while the Porsche division has been forced to lower its full-year margin forecast from 5.5-6.5% to 4-5%.
The Volkswagen Group, along with BMW and Stellantis, proposed to introduce trade countermeasures against the US' steel and aluminium tariffs. However, the European Commission put a pause on the action in early August, leaving the future of these countermeasures uncertain.
The CEO of Volkswagen Group, Oliver Blume, has spoken out against the US-EU deal, stating that it is asymmetrical and distorts competition in Europe. Despite the challenges, Volkswagen Group is planning to invest heavily in the US, but no formal, signed deal has yet been announced between the company and the US administration.
VW Group has been contacted for comment regarding its plans with the US administration, but no response has been received at the time of writing. As the negotiations continue, it remains to be seen how the situation will develop and what impact it will have on the automotive industry in both the US and Europe.
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