Volkswagen chief Blume strikes a deal with President Trump
U.S. Trade Talks: Volkswagen Pursues Tariff Exemption Through Investments
Volkswagen seeks to evade U.S. import tariffs by committing to substantial investments in American business. CEO Oliver Blume told the "Süddeutsche Zeitung" that the company has been in regular contact with U.S. Trade Ministers, and the matter eventually reaches President Trump's desk.
The auto giant aims to bolster its U.S. operations. It already employs over 20,000 people directly and nearly 55,000 indirectly in the U.S. Volkswagen produces vehicles, school buses, and trucks, and maintains a partnership with U.S. company Rivian. Blume stated that the company intends to build upon its existing presence with further investments, believing that this could influence the decision-making process.
Reportedly, Volkswagen, BMW, and Mercedes-Benz are negotiating with the U.S. Trade Ministry regarding potential tariff reductions. These discussions center around a mechanism where imports are offset by U.S. exports. Insiders expect an agreement with individual companies by June, in exchange for significant investments in the U.S.
Political context should be considered in these negotiations. Donald Trump's administration previously imposed tariffs on imported vehicles, posing challenges for European automakers such as Volkswagen. However, the current discussions are part of broader diplomatic efforts and do not directly involve Trump as a decision-maker.
CEO Blume emphasized that he speaks for the VW Group, but he always considers solutions applicable for other manufacturers or German companies. Blume also addressed speculation about his role as CEO of both Volkswagen and Porsche, stating that it may change in the future.
Sources: ntv.de, chr/rts
- Volkswagen
- Tariffs
- U.S. Trade
- The U.S. trade negotiations with Volkswagen, BMW, and Mercedes-Benz could significantly impact the employment policy within the auto industry, as potential tariff reductions may encourage these companies to further invest in domestic businesses.
- In an effort to influence U.S. trade policy, Volkswagen, together with other industry peers, is adding to the general-news discourse about tariffs and finance, negotiations that could have far-reaching implications for the entire business sector.
- As part of a general-news trend in the political sphere, Volkswagen is working on community policy by committing to substantial investments in the U.S. to secure tariff exemptions, demonstrating an ongoing engagement with industry leaders and U.S. Trade Ministers.
