Latest news with #VolkswagenGroup
Yahoo
a day ago
- Automotive
- Yahoo
Volkswagen CEO flags 'massive' US investments, 'fair' tariff talks, newspaper reports
BERLIN/FRANKFURT (Reuters) -Volkswagen is holding "fair" and "constructive" talks with the United States government on tariffs and wants to make further investments in the country, CEO Oliver Blume told German newspaper Sueddeutsche Zeitung. Several foreign companies have announced new 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 the newspaper in an interview published on Friday. "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 Germany's 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 of the lower court's ruling. Asked what Blume was offering in the talks, which aim to reduce a 25% import levy implemented earlier this year, 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, also singling out 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 was hoping Brussels and Washington will reach a broad deal for all industries. Blume avoided being drawn on a timeline on when a deal with Washington could be struck, when asked about BMW CEO Oliver Zipse's optimistic 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." (Writing by Friederike Heine and Christoph Steitz; Editing by Christian Schmollinger, Lincoln Feast and Jane Merriman) 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
Irish Examiner
a day ago
- Automotive
- Irish Examiner
Volkswagen in 'fair, constructive' talks with US on tariffs
Volkswagen is holding "fair" and "constructive" talks with the United States government on tariffs and wants to make further investments in the country, chief executive Oliver Blume said on Friday. Several foreign companies have announced new US investments in response to US 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," Mr Blume told German newspaper Sueddeutsche Zeitung. "I was in Washington myself and we have been in regular dialogue ever since." Mr Blume, who also leads Porsche as chief executive, said Volkswagen's main contact in Washington was US commerce secretary Howard Lutnick, adding he had agreed to keep any details of the discussions confidential. Earlier this week, Germany's carmakers, including Volkswagen, were reported to be in talks with Washington over a possible import tariff deal, seeking to use their US investments and exports as leverage to soften any blow. Mr Trump's trade war has cost companies more than €30m 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 US trade court this week, but a federal appeals court has temporarily reinstated them to consider the Trump administration's appeal of the lower court's ruling. Asked what Mr Blume was offering in the talks, which aim to reduce a 25% import levy implemented earlier this year, 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, also singling out a $5.8bn (€5.1bn) investment in US company Rivian. "We would build on this with further, massive investments," Mr Blume said. Such investments should be factored into any decisions regarding tariffs, added Mr Blume, who said he was hoping Brussels and Washington will reach a broad deal for all industries. Mr Blume avoided being drawn on a timeline on when a deal with Washington could be struck, when asked about BMW chief Oliver Zipse's optimistic 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." Reuters
Business Recorder
a day ago
- Automotive
- Business Recorder
Volkswagen CEO flags ‘massive' US investments, ‘fair' tariff talks, newspaper reports
BERLIN/FRANKFURT: Volkswagen is holding 'fair' and 'constructive' talks with the United States government on tariffs and wants to make further investments in the country, CEO Oliver Blume told German newspaper Sueddeutsche Zeitung. Several foreign companies have announced new 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 the newspaper in an interview published on Friday. '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 Germany's 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 tariffs to remain in effect after appeals court grants stay 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 of the lower court's ruling. Asked what Blume was offering in the talks, which aim to reduce a 25% import levy implemented earlier this year, 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, also singling out 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 was hoping Brussels and Washington will reach a broad deal for all industries. Blume avoided being drawn on a timeline on when a deal with Washington could be struck, when asked about BMW CEO Oliver Zipse's optimistic 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.'
RTÉ News
2 days ago
- Automotive
- RTÉ News
Volkswagen CEO flags 'massive' US investments in tariff talks, newspaper reports
Volkswagen is holding "fair" and "constructive" talks with the US government on tariffs and wants to make further investments in the country, CEO Oliver Blume told German newspaper Sueddeutsche Zeitung. "So far, we have had absolutely fair, constructive discussions," Blume told the newspaper in an interview published today. "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 US Commerce Secretary Howard Lutnick, adding he had agreed to keep any details of the discussions confidential. Sources told Reuters earlier this week that Germany's carmakers, including Volkswagen, were in talks with Washington over a possible import tariff deal, seeking to use their US investments and exports as leverage to soften any blow. Asked what Blume was offering in the talks, which aim to reduce a 25% import levy implemented earlier this year, 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 US, also singling out a $5.8 billion investment in US 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 was hoping Brussels and Washington will reach a broad deal for all industries. Blume avoided being drawn on a timeline on when a deal with Washington could be struck, when asked about BMW CEO Oliver Zipse's optimistic assessment that tariffs would likely fall from July.
Yahoo
2 days ago
- Automotive
- Yahoo
Rivian secures $1B infusion from VW after meeting Q2 profit goal
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Electric vehicle maker Rivian achieved its second consecutive quarterly gross profit in Q2, which triggered a $1 billion cash infusion from partner Volkswagen Group, CEO and founder RJ Scaringe said during a call with analysts May 6. The funds, which executives expect to receive by the end of June, will aid Rivian in deploying its technology and software stack to a wide array of vehicles by capitalizing on VW's scale as it pushes for broader EV adoption, according to Scaringe. 'The relationship there continues to progress really well,' Scaringe said of the partnership. 'At this point, we're very focused on executing a lot of programs across the Volkswagen Group.' In addition to financial support from VW, Rivian's efforts to scale production has also been bolstered by a $6.6 billion Department of Energy loan finalized in January to revive the company's stalled Georgia EV factory project, which is expected to start production by 2028. The company is also investing $120 million in Normal, Illinois, where it is constructing a supplier park meant to create an electric vehicle manufacturing ecosystem next to its production plant where it is building the R2 SUV. However, like other automakers, Rivian also faces tariff-fueled headwinds necessitating plans to offset higher duties on automotive parts, especially battery components. CFO Claire McDonough said on the call that the company expected 'per unit direct impact from tariffs to be a couple thousand dollars for 2025 based off of the currently announced tariffs in place.' Rivian's chief concern is rising cost for battery materials. McDonough said while the company's stockpile of batteries is sufficient to carry its production through early 2026, it continues to monitor export restrictions on rare earth minerals from China. 'We are actively monitoring these developments and working to mitigate potential risks through a variety of initiatives, including strategic sourcing and proactive engagement with policymakers,' she said. Higher component costs due to tariffs moved Rivian to raise its capital expenditure guidance to between $1.8 billion and $1.9 billion. Uncertainty fueled by economic policies also led the company to revise its delivery outlook to 40,000 to 46,000 vehicles, down from 46,000 to 51,000 announced April 2. But Rivian believes higher production costs may be short-lived as it works with suppliers, including LG, to secure domestically produced batteries. Scaringe said the R2 uses the 4695 cell format currently sourced from Korea, but that will soon change. 'We've been for a while now working very closely with our partner on this, which is LG, to localize that into the United States and starting in 2027 those cells will be produced in Arizona,' he said. Recommended Reading Rivian investing $120M in Illinois to strengthen domestic supply chain 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
