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VW Says New U.S. Investment Requires Tariff Relief

Talks in Washington have yielded no concessions, leaving projects on hold pending cost relief and predictable rules.

Overview

  • CEO Oliver Blume said large projects such as a potential Audi factory are not financeable under current U.S. tariffs and called for short‑term relief plus long‑term reliable conditions.
  • Volkswagen estimates the tariffs cost the company about €2.1 billion in the first nine months of 2025.
  • The company has discussed an Audi plant with President Donald Trump and Trade Minister Howard Lutnick, but the talks have produced no binding outcomes.
  • Audi has explored a U.S. plant since 2023, initially encouraged by American subsidies, yet the plan remains contingent on tariff changes.
  • Despite a stronger €6 billion automotive cash inflow last year, Volkswagen is pressing ahead with cost cuts and aims to trim total investments to about €160 billion by 2030.