Volkswagen CEO Oliver Blume said the company is close to a US tariff deal as it aims to grow its affordable electric car market in Europe. Trump-era tariffs have already cost the group “several billions,” even with a planned reduction from 27.5% to 15%. Volkswagen plans major US investments to secure a better deal and may localise Audi production.
Porsche Impacted by Tariffs and Weak China Market
Blume noted Porsche is being squeezed by tariffs and a weak Chinese market, costing several billion euros this year. US-bound Porsches are mostly made in Germany, making them more affected than VW, BMW, or Mercedes-Benz models.
EV Strategy and BMW Update
Volkswagen unveiled a small, affordable electric car concept targeting a fifth of Europe’s compact EV market. BMW will launch a Chinese-made iX3 in 2026 with localised software for Chinese consumers.
Industry Disruption
Trump’s tariffs have disrupted the auto industry globally. In the UK, Lotus plans to cut 550 jobs and Jaguar Land Rover up to 500 management roles due to tariff uncertainty and falling sales, alongside ongoing cyber-attack challenges.
