Volkswagen is considering relocating some Audi production to the United States to mitigate potential tariffs imposed by President Donald Trump, the company’s CEO said Friday.
In an interview with Frankfurter Allgemeine Zeitung, Volkswagen CEO Oliver Blume said the company is engaged in “constructive discussions” with the U.S. administration and is exploring options to maintain its market presence.
Blume indicated that Audi production in the United States aligns with the brand’s development strategy. However, he ruled out similar manufacturing for Porsche, citing insufficient production volume of around 70,000 vehicles annually.
Trump’s recently announced 25% tariff on imported automobiles threatens German car manufacturers, with the U.S. being the primary destination for German auto exports. Volkswagen, which sold over one million vehicles in North America last year, is particularly vulnerable.
Currently, 65% of Volkswagen’s flagship brand sales in the U.S. come from vehicles imported from Europe or Mexico. For Audi and Porsche, 100% of sales are from imported vehicles.
The company reported that planned tariffs have already impacted its first-quarter operating profit. With declining sales in China, the U.S. market has become increasingly crucial for the German automaker.
Blume did not provide specifics on the potential financial implications of the tariffs or potential price adjustments in the U.S. market. (source: agencies)
