Volkswagen seeks to negotiate import taxes and remains committed to further U.S. investments
U.S.-Volkswagen Negotiations: VW Proposes Major Expansion in Return for Tariff Relief
The German automaker, Volkswagen, is holding direct discussions with the U.S. government to resolve the ongoing trade dispute, sources familiar with the matter reported. As part of the negotiations, Volkswagen is offering substantial new investments in the United States.
Volkswagen Group CEO, Oliver Blume, revealed the details during an interview with the Süddeutschen Zeitung. Blume highlighted the U.S. Trade Representative as the primary point of contact, noting that the issues also extend to the desk of the U.S. President. He maintained that the discussions have been fair and constructive thus far.
Blume disclosed that the Volkswagen Group intends to increase its investments in the U.S. significantly, should the tariff issue be resolved. Volkswagen already employs over 20,000 Americans directly and more than 55,000 indirectly. The company produces cars, school buses, and trucks in the U.S., with a partnership with the domestic firm Rivian.
Blume stated that the proposed investments would further strengthen the domestic operations. He emphasized that those investing in a country should reap the benefits of better business conditions.
Regarding the discussed restructuring and potential job reductions at Volkswagen, Blume acknowledged the need for change to secure the future of the company in Germany and the global automotive market. He also expressed his determination to make a difference, upholding his role as CEO of both VW and Porsche.
The ongoing talks are not isolated to Volkswagen, as other German automakers, such as BMW and Mercedes, are involved in similar negotiations with the U.S. Commerce Department. The discussions indicate a broader strategy to promote bilateral automotive investment.
Sources:Dts News Agency, Washington Post, Automotive News Europe, MarketWatch, Wall Street Journal
The Volkswagen Group, in its negotiations with the U.S. government, is offering significant investments in the American business sector, specifically in the finance industry, as part of a proposed deal for tariff relief.
should the tariff issue be resolved, Volkswagen aims to further strengthen its operations in the U.S., leveraging better business conditions and reinvesting in the industry.
