Volkswagen Group CEO Oliver Blume described ongoing discussions with the US government regarding tariffs as “fair” and “constructive,” while signalling intentions for significant further investments in the country. Blume’s comments were made in an interview published on Friday by the German newspaper Süddeutsche Zeitung.
Blume confirmed Volkswagen’s active engagement with US authorities on the tariff issue.
So far, we have had absolutely fair, constructive discussions. I was in Washington myself and we have been in regular dialogue ever since.
Blume identified US Commerce Secretary Howard Lutnick as the primary contact, emphasising an agreement to maintain confidentiality regarding the talks’ specifics. These discussions, as reported by sources to Reuters earlier in the week, involve German automakers leveraging their US investments and exports to mitigate potential impacts from tariffs.
The backdrop is US President Donald Trump’s trade policies, which cost companies over $34 billion through lost sales and higher costs. While a US trade court blocked most tariffs this week, a federal appeals court has temporarily reinstated them pending an appeal.
The talks aim to reduce a 25% import levy implemented earlier this year. When queried about Volkswagen’s position in these negotiations, Blume stated:
The Volkswagen Group wants to invest further in the USA. We have a growth strategy.
Blume pointed to Volkswagen’s substantial current footprint in the United States, employing “over 20,000 people directly and over 55,000 people indirectly.” He specifically referenced a significant $5.8 billion investment in US electric vehicle company Rivian. He also expressed hope for a broader industry-wide agreement between Brussels and Washington.
Regarding the timeline for a potential deal, Blume avoided endorsing BMW CEO Oliver Zipse’s optimistic prediction that tariffs might decrease from July.
Of course, I also want it to happen quickly. But it depends on many factors and I can’t promise anything.
While several foreign firms have announced new US investments in response to Trump’s tariffs, German automakers, for whom the US is the largest export market, have been more restrained. Volkswagen’s Audi, which currently lacks US production, is planning to manufacture some models there, although the brand asserts this plan pre-dates the current administration.
