President Trump’s Plan in Action: Volkswagen in Talks with U.S. Officials on Expanding Production in America

Volkswagen has held talks with the U.S. government over major investments in the world’s second-largest auto market, where tariffs have already cost Europe’s leading automaker billions of euros this year.

CEO Oliver Blume told Reuters that Volkswagen opposes the “asymmetric” agreement between Brussels and Washington, which imposes a 15% tariff on cars imported from the EU while leaving industrial goods from the U.S. tariff-free in Europe.

“That’s why we are pursuing our investment plan in the U.S.,” Blume said at the IAA auto show in Munich, adding that the initiative would expand local jobs and supply chains. He described the discussions with U.S. officials as “very positive.”

Volkswagen is weighing significant investments to grow its U.S. presence, including a possible Audi plant, and has discussed with Washington how the government might support such a move. “We need to make a decision on localizing our business there now,” Blume said, stressing the urgency.

The automaker is trying to soften the blow from the current 27.5% U.S. import tariffs on cars — costs that Blume said have run into several billion euros this year, largely due to imports of Audi and Porsche models.

Like its competitors, Volkswagen is awaiting the tariff reduction to 15% that the Trump administration has promised. Still, shifting more production to the U.S. is seen as a strategic long-term solution.