Volkswagen Group Proposes Domestic Adjustments During Trade Discussions in the United States
Volkswagen Group, one of the world's largest automakers, is planning to invest heavily in the US, but recent trade disputes between the US and EU have put a dent in their profits.
The US tariffs on steel and aluminum, imposed earlier this year, have caused a significant financial impact on Volkswagen Group. According to the company's financial reports, the tariffs resulted in a €1.3 billion ($1.5bn) hit to their operating profit in the first half of 2025.
This financial setback has affected several divisions of the group, with Audi and Porsche experiencing profit drops. Audi's profit dropped by about 64%, while Porsche saw a drop of about 91%. In response, Audi suspended exports to the US from both Europe and Mexico. Porsche, too, has been affected, with the full-year margin forecast for both divisions being lowered from 5.5-6.5% to 4-5%.
The European Commission has proposed to introduce trade countermeasures against these tariffs, and Volkswagen Group, along with BMW and Stellantis, participated in a meeting with the European Commission to discuss these measures.
However, no formal, signed deal has yet been announced between Volkswagen Group and the uscis administration. The ongoing negotiations are complex, with issues such as demilitarization demands, conditions for ceasefire, and hostages release being points of contention.
In a recent statement, Volkswagen Group's CEO, Oliver Blume, expressed concerns about the asymmetry and competition distortion in Europe due to the US-EU deal. He emphasised the need for a fair and balanced agreement that would not disadvantage European manufacturers.
Volkswagen Group has been contacted for comment regarding potential developments with the uscis administration, but no further information has been disclosed at this time. The pause on the action to introduce trade countermeasures against the US' steel and aluminum tariffs, initiated by the European Commission in early August, is still in effect.
As the negotiations continue, it remains to be seen how the US tariffs will impact Volkswagen Group's investment plans in the US and the broader automotive industry.
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