Win for Trump as VW pledges 'massive' investment in US jobs… to build controversial cars

Daily Mail​

2 days ago

Volkswagen's CEO confirmed the company is looking to make a 'massive' US investment in an attempt to avoid tariff blowback.
Oliver Blume, VW's top boss, said he has been in contact with members of the Trump administration, including US Commerce Secretary Howard Lutnick.
His strategy to shield VW from steep tariff costs appears two-fold: maintain open communication with US officials and continue ramping up investment in American businesses.
'Our primary contact is the US Secretary of Commerce, but ultimately, the issues also go through the US President's desk,' Blume told Süddeutsche Zeitung, a German newspaper.
'So far, we've experienced absolutely fair, constructive discussions.'
Blume also said Volkswagen plans to continue its heavy investment in Rivian, an American electric vehicle startup that has not been without controversy.
VW first announced its partnership with Rivian in June 2024, and completed the initial $1 billion investment in November.
The deal gave Rivian a critical infusion of cash, and gave Volkswagen access to Rivian's next-generation infotainment software and electrical architecture.
Both companies have said they're happy with the collaboration and are preparing for a second phase of investment more than $4 billion through 2026.
Speaking to the German paper, Blume doubled-down on that cash promise, saying his company 'intends to continue investing in the US' including 'further, massive investments' in Rivian.
For years, Volkswagen has leaned heavily into modernizing its vehicle interiors.
Models across the brand — including entry-level Jetta sedans and high-end Atlas SUVs — were revamped with digital sliders and complicated infotainment screens.
Often, the tech-happy interiors ditched buttons for climate and audio controls.
Volkswagen has admitted that it went too far with this change, with the brand's top designer, Andreas Mindt, recently saying that next-generation models will go back to buttons.
'Honestly, it's a car. It's not a phone: it's a car,' Mindt said.
Meanwhile, Rivian has spent billions on its proprietary interior technology, including its massive touchscreens.
Imported cars are currently smacked with a 25 percent tariff when they enter the US
Rivian has consistently dominated customer satisfaction ratings, with drivers praising the high-tech feel.
But the EV startup has burned through a serious amount of cash. It has lost billions of dollars since its inception in 2009, and remains in the red.
It hopes to achieve consistent profitability after 2026, when the company is expected to produce its lower-cost, smaller R2 SUV.
Both companies have worked closely on the development of a new startup, Scout Motors.
The startup is bringing extended-range pickups and SUVs to the US market: they are battery-powered, but will have a gas generator on board.
VW's latest affirmation of its Rivian partnership is another attempt by the brand to grapple with Trump's 25 percent automotive tariffs.
The German manufacturer initially told customers that it would display the cost of tariffs on its new-vehicle stickers.
In early May, the company also confirmed it was bringing an Audi model's production to the US.
A representative for the carmaker declined to detail which car would come. However, industry experts are speculating it will be the electric Audi Q4 E-tron.
'We want to localize more strongly in the USA,' a spokesperson told DailyMail.com.
'To this end, we are currently examining various scenarios. We are confident that we will make a decision on this in consultation with the Volkswagen Group before the end of this year as to what this will look like in concrete terms.'