Latest news with #Blume
Time of India
2 days ago
- Automotive
- Time of India
Volkswagen flags 'massive' US investments and says tariff talks constructive
Volkswagen wants to make more big investments in the United States, CEO Oliver Blume said in an interview with a German newspaper on Friday, adding that tariff talks with the U.S. government were "fair" and "constructive". Several foreign companies have announced U.S. investments in response to President Donald Trump's import tariffs, but German carmakers have been more cautious about committing more resources to what is their biggest export market. Volkswagen's Audi brand, which has no production in the United States, is planning to produce some models in there, although the brand has said that the plan pre-dates the Trump administration. "So far, we have had absolutely fair, constructive discussions," Blume told Sueddeutsche Zeitung. "I was in Washington myself and we have been in regular dialogue ever since." Blume, who also leads Porsche AG as CEO, said Volkswagen's main contact in Washington was U.S. Commerce Secretary Howard Lutnick, adding he had agreed to keep any details of the discussions confidential. Sources told Reuters earlier this week that German carmakers including Volkswagen were in talks with Washington over a possible import tariff deal, seeking to use their U.S. investments and exports as leverage to soften any blow. Trump's trade war has cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis of corporate disclosures, with companies pursuing various strategies to cope. Most of the tariffs were blocked by a U.S. trade court this week, but a federal appeals court has temporarily reinstated them to consider the Trump administration's appeal against the trade court's ruling. The 25% tariff imposed on auto imports earlier this year has not been affected by the rulings. Uncertainty worse than tariffs In a recent survey by Germany's Machinery and Equipment Manufacturers Association (VDMA), nearly three quarters of participants said uncertainty over U.S. trade policy had a strong impact on companies' competitiveness, while just 43% said the same for the 10% tariffs slapped on goods from most U.S. trading partners. "The uncertainty surrounding the U.S. tariffs is causing more problems in our sector than the tariffs themselves," Andrew Adair, VDMA's trade policy adviser for North America, told Reuters. "Uncertainty causes customers to delay purchasing decisions-including American companies that are motivated to purchase machinery to ramp up their local production." Asked what Blume was offering in the talks, which aim to reduce the 25% autos levy, he said: "The Volkswagen Group wants to invest further in the USA. We have a growth strategy." Blume said the Volkswagen Group already employed over 20,000 people directly and over 55,000 people indirectly in the United States, and highlighted a $5.8 billion investment in U.S. company Rivian. "We would build on this with further, massive investments," Blume said. Such investments should be factored into any decisions regarding tariffs, added Blume, who said he hoped Brussels and Washington would reach a broad deal for all industries. Blume declined to say when a deal with Washington could be struck, when asked about BMW CEO Oliver Zipse's assessment that tariffs would likely fall from July.
Yahoo
3 days ago
- Automotive
- Yahoo
Volkswagen to offer investments to US to ward off Trump's car tariffs
Volkswagen (VW) is offering to make large-scale investments in the United States to ward off high tariffs on its imported vehicles, according to chief executive Oliver Blume. "The Volkswagen group aims to invest more in the US," Blume told Germany's Süddeutsche Zeitung daily in remarks published on Friday. VW already employs more than 20,000 people in the US, who assemble cars, school buses and trucks. VW is currently building a new plant for its Scout Motors, a US start-up founded in 2022. "We will build on this with further massive investments," Blume said, adding that he expected this to play a key role in decisions on tariffs. Talks to date have been primarily with US Commerce Secretary Howard Lutnick, but the issues discussed also passed over President Donald Trump's desk, Blume said. "We are so far having absolutely fair and constructive talks," he said, without saying when he expected a conclusion. "I would of course like them to proceed quickly, but this depends on many factors, and I cannot promise anything," Blume said. Other German carmakers are also looking to hold talks on tariffs. BMW head Oliver Zipse told a recent shareholders' meeting that long and strong engagement in the US would help the company to be heard. BMW operates its largest plant in the world in the US and is reported to be the country's largest automotive exporter. Mercedes is also reported to be in talks with the US administration. At the beginning of April, Trump imposed additional tariffs of 25% on imported cars. While other tariffs were later suspended, those on cars remain in place. The US is the German automotive sector's biggest foreign market, with almost 450,000 German-produced vehicles exported there in 2024, according to industry figures.
CNBC
3 days ago
- Automotive
- CNBC
Volkswagen flags 'massive' U.S. investments and says tariff talks constructive
Volkswagen wants to make more big investments in the United States, CEO Oliver Blume said in an interview with a German newspaper on Friday, adding that tariff talks with the U.S. government were "fair" and "constructive." Several foreign companies have announced U.S. investments in response to President Donald Trump's import tariffs, but German carmakers have been more cautious about committing more resources to what is their biggest export market. Volkswagen's Audi brand, which has no production in the United States, is planning to produce some models in there, although the brand has said that the plan pre-dates the Trump administration. "So far, we have had absolutely fair, constructive discussions," Blume told Sueddeutsche Zeitung. "I was in Washington myself and we have been in regular dialogue ever since." Blume, who also leads Porsche as CEO, said Volkswagen's main contact in Washington was U.S. Commerce Secretary Howard Lutnick, adding he had agreed to keep any details of the discussions confidential. Sources told Reuters earlier this week that German carmakers including Volkswagen were in talks with Washington over a possible import tariff deal, seeking to use their U.S. investments and exports as leverage to soften any blow. Trump's trade war has cost companies more than $34 billion in lost sales and higher costs, according to a Reuters analysis of corporate disclosures, with companies pursuing various strategies to cope. Most of the tariffs were blocked by a U.S. trade court this week, but a federal appeals court has temporarily reinstated them to consider the Trump administration's appeal against the trade court's ruling. The 25% tariff imposed on auto imports earlier this year has not been affected by the rulings. In a recent survey by Germany's Machinery and Equipment Manufacturers Association (VDMA), nearly three quarters of participants said uncertainty over U.S. trade policy had a strong impact on companies' competitiveness, while just 43% said the same for the 10% tariffs slapped on goods from most U.S. trading partners. "The uncertainty surrounding the U.S. tariffs is causing more problems in our sector than the tariffs themselves," Andrew Adair, VDMA's trade policy adviser for North America, told Reuters. "Uncertainty causes customers to delay purchasing decisions—including American companies that are motivated to purchase machinery to ramp up their local production." Asked what Blume was offering in the talks, which aim to reduce the 25% autos levy, he said: "The Volkswagen Group wants to invest further in the USA. We have a growth strategy." Blume said the Volkswagen Group already employed over 20,000 people directly and over 55,000 people indirectly in the United States, and highlighted a $5.8 billion investment in U.S. company Rivian RIVN.O. "We would build on this with further, massive investments," Blume said. Such investments should be factored into any decisions regarding tariffs, added Blume, who said he hoped Brussels and Washington would reach a broad deal for all industries. Blume declined to say when a deal with Washington could be struck, when asked about BMW CEO Oliver Zipse's assessment that tariffs would likely fall from July. "Of course, I also want it to happen quickly. But it depends on many factors and I can't promise anything."
Yahoo
3 days ago
- Automotive
- Yahoo
Volkswagen in direct talks with US government regarding tariff deal
Volkswagen's chief executive officer (CEO) Oliver Blume has revealed in an interview with the German newspaper Süddeutsche Zeitung that the company is in the process of negotiating with the US government over potential tariff relief and ongoing US investments. Although the main contact for these talks is the US Secretary of Commerce, Howard Lutnick, Blume shared that these issues also reached the US president, Donald Trump. Blume highlighted that the Volkswagen Group was keen on continuing to invest in the US, if a suitable agreement on tariffs could be reached. The group already has more than 20,000 direct employees in the US, with more than 55,000 indirect employees. Related Germany sees a jump in unemployment as manufacturing weakness drags on Markets jump after court rules against Donald Trump's sweeping tariffs It builds school buses, cars and trucks. Some of its most popular models are the Atlas, the Passat and the Atlas Cross Sport, which are all produced at the Chattanooga Assembly Plant in Tennessee. This plant also assembles Volkswagen's all-electric ID.4 model. The German car company also partners with US electric vehicle (EV) company, Rivian, in order to produce next-generation EV architectures and platforms. This tie-up focuses on bringing together Volkswagen's Modular Electric Drive Matrix (MEB) platform with Rivian's battery design and software expertise. Blume emphasised that Volkswagen would be very likely to build significantly on these pre-existing investments and pointed out that any company which invests in a country should ideally be offered better terms. German newspaper Handelsblatt, meanwhile, reported that Mercedes-Benz and BMW may also be trying to work out a possible deal with the US. Euronews has contacted them for comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euronews
3 days ago
- Automotive
- Euronews
Volkswagen in direct talks with US government regarding tariff deal
Volkswagen's chief executive officer (CEO) Oliver Blume has revealed in an interview with the German newspaper Süddeutsche Zeitung that the company is in the process of negotiating with the US government over potential tariff relief and ongoing US investments. Although the main contact for these talks is the US Secretary of Commerce, Howard Lutnick, Blume shared that these issues also reached the US president, Donald Trump. Blume highlighted that the Volkswagen Group was keen on continuing to invest in the US, if a suitable agreement on tariffs could be reached. The group already has more than 20,000 direct employees in the US, with more than 55,000 indirect employees. It builds school buses, cars and trucks. Some of its most popular models are the Atlas, the Passat and the Atlas Cross Sport, which are all produced at the Chattanooga Assembly Plant in Tennessee. This plant also assembles Volkswagen's all-electric ID.4 model. The German car company also partners with US electric vehicle (EV) company, Rivian, in order to produce next-generation EV architectures and platforms. This tie-up focuses on bringing together Volkswagen's Modular Electric Drive Matrix (MEB) platform with Rivian's battery design and software expertise. Blume emphasised that Volkswagen would be very likely to build significantly on these pre-existing investments and pointed out that any company which invests in a country should ideally be offered better terms. German newspaper Handelsblatt, meanwhile, reported that Mercedes-Benz and BMW may also be trying to work out a possible deal with the US. Euronews has contacted them for comment.
