Hi Aron, why did you reduce it?
In the image I also shared in the post, auto and parts are not subject to the reciprocal tariffs, because they are already subject to 25%.
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Thanks for clarifying. I had generalized it.
Volkswagen to introduce “import fee” on cars affected by tariffs
- Volkswagen said it will add an “import fee” on vehicles affected by the tariffs.
- It also said it will temporarily halt rail shipments of vehicles from Mexico and would hold at port cars arriving by ship from Europe.
- It said it will announce price strategies for the affected vehicles in mid-April.
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Great that you corrected that. My goal in general is to not correct any things i see but have you and Aron (and eventually more people from the community) correct each other
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I=5
Volkswagen brand will keep prices flat through May as it awaits clarity on the tariffs
- Kjell Gruner, VW North America CEO said the Volkswagen brand will keep prices flat through May so as to keep customers coming to the dealer shops.
- Gruner said the earlier reports indicating VW was introducing import fees due to the tariffs was misconstrued.
- He said that after May, the brand will spread the cost among suppliers, dealers and consumers.
I=5
Blume said they are having constructive discussions with the U.S. government regarding the tariffs
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CEO Oliver Blume said they are have constructive discussions with the U.S. government regarding the tariffs.
“We have a forward-looking strategy with exciting project ideas that are tailored to and attractive for the US market. We are putting that on the table. Constructive talks are currently underway with the US government,” Blume said in an interview with Frankfurter Allgemeine Zeitung" (FAZ).
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He said they are discussing producing Audi in the U.S. but ruled out production of Porsche models in the country due to low volumes.
“For Audi, US production would be a development step in line with our strategy,” said Blume.
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Blume’s announcement are in line with Trump’s recent announcement that they are considering giving automakers temporary tariff exemptions as they switch production to the U.S.
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Volkswagen of America will maintain current prices of its vehicles through June, extended from May.
“In an effort to keep vehicles affordable for our customers, the brand will cover today’s increased costs,” the automaker said in a statement.
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CEO Oliver Blume said they are having “fair” and “constructive” talks with the US government on tariffs and that they plan to increase investments in the country.
“So far, we have had absolutely fair, constructive discussions,” Blume said. “I was in Washington myself and we have been in regular dialogue ever since.” “We would build on this with further, massive investments.”
German Chancellor Friedrich Merz said he is pursuing a deal that would allow US -made cars to be imported into Germany duty-free in exchange for tariff waivers on the same number of German vehicles exported to US.
“We have to see if we can come up with an offset rule or something along those lines,” Merz said after meeting with Trump.
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Audi could build a plant costing €4 billion to cope with Trump’s tariffs
- One of the scenarios being considered by Audi is building a plant in the U.S., which would cost 4 billion euros, the most expensive option, Spiegel reported, citing company sources.
- The news comes after a recent report that said the Audi US plant is not part of the 2025-2030 planning round being discussed by the management.
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Volkswagen will continue to be impacted by 25% tariff on car imports from Mexico as deal takes time to be concluded
- Volkswagen recently got reprieve after the EU and US agreed to 15% tariff on EU goods, lowered from 30%.
- However, it continues to face 25% tariff on Mexico imports after Trump announced today that 25% tariff will be extended for 90 days.
- Around 340,000 or 47% of Volkswagen models sold in the US in 2024 were produced in Mexico.
- Volkswagen said in Q2 2025 earnings call that a 15% tariff on both Mexico and Europe will likely bring its operating return on sales target to 4.5% in 2025. It’s guiding operating return on sales target of between 4% and 5% for 2025, the lower range being pegged on 27.5% tariff and the upper range being pegged on 5% tariff.