CEO Oliver Blume said the 27.5% tariffs on European cars and parts, imposed in April, have hit the group’s balance sheet by “several billion euros” this year. While the US has agreed to cut the rate to 15%, Blume warned it would still “be a burden” on Europe’s largest carmaker, which owns Audi, Seat and Porsche.
VW is pushing for a separate deal by pledging “massive” US investment, potentially including local Audi production and exports from American plants. Blume said he hopes for a resolution “in the next weeks.”
Porsche has been particularly hard hit, with cars for the US market almost entirely built in Germany. Blume described the luxury brand as trapped in a “sandwich” of tariffs and weakening Chinese demand.
At the Munich motor show, Volkswagen also unveiled a concept for a low-cost electric vehicle, targeting 20% of Europe’s compact EV market. Rival BMW said a Chinese-made version of its iX3 SUV will launch in 2026, adapted with localised software.
Trump’s trade war has already triggered job cuts at Lotus and Jaguar Land Rover in the UK, as carmakers struggle with falling sales and industry-wide disruption.
