Volkswagen CEO Oliver Blume discusses the tariff situation between the US and the European Union. Speaking to Bloomberg’s Stefan Nicola, Blume says the agreement gives the automaker “planning security” but the 15% tariff “would be a burden” for the company. “We don’t appreciate the asymmetric deal in-between the US and EU because it’s distorting the competition in Europe,” Blume adds. Speaking from the sidelines of the Munich Auto Show, he also talks about the group’s luxury brands such as Audi and Porsche.
Volkswagen CEO Oliver Blume talks with Bloomberg at the Munich Auto Show about the possible impact of US tariffs, competition with Chinese automakers on electric vehicles, and the outlook for sales of luxury Porsche and Audi cars.
Volkswagen has promised “massive” investments in the US as part of its efforts to secure a separate deal with the Trump administration that could lower its tariff rate below 15%.
“We don’t appreciate the asymmetric deal between US and EU, because it’s distorting the competition in Europe,” he said.
“We are counting on our own offer investing heavily in the US … and there we are in close contact and good talks with the US government, and we hope that we come to a quick solution also during the next weeks with the support from the US government to our investment.”
Blume has said the German group could consider localising the production of Audi cars and expanding exports out of the US.
The Volkswagen boss, speaking at a trade show in Munich on Monday, said its luxury car brand Porsche was being squeezed by a “sandwich” of tariffs and a weak Chinese market.
“It’s several billion euros on our balance sheet that this situation costs this year,” he told Reuters.
Trump’s tariffs on car imports are expected to hit Porsche particularly hard as, unlike VW models and the German rivals BMW and Mercedes-Benz, Porsche cars sold in the US are almost exclusively manufactured in Germany.
Blume also presented a concept for a new small electric car at the trade show, as Volkswagen sets out to capture a fifth of the compact electric cars market in Europe.
