The German automaker’s boss said Volkswagen is struggling with the U.S. as it watches the affordable electric car market on the market, the German automaker said. Europe.
Europe’s largest automaker also owns Audi, seats and Porsche brands, under attack by trade tariffs by Donald Trump, Announce In April. CEO Oliver Blume said the combination of levy and a volatile market has cost “billions of dollars”.
although The Trump administration has agreed to reduce the current 27.5% European car and auto parts tariffs to 15%He told Bloomberg TV that lower interest rates will still be “burdened for the Volkswagen Group.”
Volkswagen promises “large-scale” investment in the United States As part of its efforts to reach a separate deal with the Trump administration, the deal could lower its tariff rates below.
“We don’t appreciate the asymmetric agreement between us and the EU because it is distorting the competition in Europe,” he said.
“We are counting on our offer to make a lot of investment in the United States…where we have close contact and good talks with the U.S. government and we hope we can quickly resolve the solution in the coming weeks with the support of the U.S. government.”
Blume said German groups could consider local production in the United States and expand exports to the United States.
Speaking at a trade show in Munich on Monday, Volkswagen owner said its luxury car brand Porsche was squeezed by tariffs and a weak “sandwich” in the Chinese market.
“On our balance sheet, this situation will cost billions of euros this year,” he told Reuters.
Trump’s tariffs on auto imports are expected to hit Porsche in particular Germany.
Blume also proposed a new concept for small electric vehicles at a trade show as Volkswagen began capturing one-fifth of the European compact electric vehicle market.
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“These models are built on a concept: electronic activity for everyone at attractive prices and profitable prices,” he said.
Its rival BMW said it is preparing a Chinese version of the IX3 SUV to start sales in 2026.
BMW sales head Jochen Goller said the internal display of China’s IX3 is the same as the European version, but the localization software will be tailored to Chinese tastes.
Trump’s trade war has sparked turmoil across the entire automotive industry. In the UK, the Chinese sports car maker Lotus said it would cut 550 jobs, partly due to uncertainty caused by tariffs.
Jaguar Land Rover announced that up to 500 management efforts will be cut in the UK as part of a voluntary layoff round, after it reported that sales were also linked to Trump’s tariffs. The UK’s largest automaker is dealing with Destruction caused by cyber attacks.
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