Volkswagen to Leave U.S. and China to Their Own Devices as It Shifts Its Focus

Volkswagen Group is reworking its strategy in response to an uncomfortable reality: its two key markets — the United States and China — have become crowded and expensive. According to Reuters, the company plans to invest €160 billion by 2030, signaling a more cautious approach; previous multi-year investment cycles were more generous, and 2024 was a peak year for spending. Now Europe’s largest automaker is adopting a different tone — less grand ambition, more survival mode and prioritization.

CEO Oliver Blume explains the shift simply: the new plan centers on Germany and Europe, meaning products, technologies, and infrastructure “at home.” This is both a message to the company’s manufacturing sites and a response to external pressure: U.S. tariffs and fierce competition in China are squeezing the margins of the group’s brands. Porsche has taken the biggest hit, as roughly half of its sales come from the U.S. and China. Against that backdrop, the premium marque is already scaling back parts of its earlier electrification ambitions.

One unresolved question is Audi’s future in the U.S. The company is considering a local factory, but the plan depends heavily on whether Washington provides substantial financial incentives. As for China, Blume does not expect Porsche to grow there, though he acknowledges the possibility of deeper localization within the group — and even the idea of a “special Porsche” tailored for the local market at some point down the line.