Billions lost due to US tariffs: Volkswagen CEO
What's the story
Oliver Blume, the CEO of Volkswagen, has revealed that the company has lost billions of euros due to US tariffs this year. The situation has particularly affected its key brands. "Up to now, it's several billion euros on our balance sheet that this situation costs this year," Blume told Reuters while attending the IAA Munich car show.
Tariff impact
Porsche and Audi are most affected
Volkswagen, along with its competitors, is still waiting for the US to reduce its auto import tariffs from 27.5% to 15%. This has severely affected the company's Porsche and Audi as they don't have production facilities in the US. Blume stressed that it was more important to see how the tariff situation would evolve in the future.
Information
Talks with US government over tax breaks
Blume also highlighted Volkswagen is in talks with the US government over tax breaks for planned investments. One of these potential investments is an Audi production plant in the US. The decision on this project is expected to be made by the end of 2025.
Market struggles
Porsche's challenging position
Blume, who is also the CEO of Porsche, said that the luxury sports car maker was in a "sandwich position more than any other automotive manufacturer." This is because its two biggest markets—China and the US—are either struggling or facing tariffs. The statement highlights how global trade policies and market conditions can impact even established brands like Porsche.