"While the Trump administration has agreed to reduce the current 27.5% tariffs on European cars and car parts to 15%, the lower rate would still be a burden for Volkswagen Group, he told Bloomberg TV. Volkswagen has promised massive investments in the US as part of its efforts to secure a separate deal with the Trump administration that could lower its tariff rate below 15%."
"We don't appreciate the asymmetric deal between US and EU, because it's distorting the competition in Europe, he said. We are counting on our own offer investing heavily in the US and there we are in close contact and good talks with the US government, and we hope that we come to a quick solution also during the next weeks with the support from the US government to our investment."
"The Volkswagen boss, speaking at a trade show in Munich on Monday, said its luxury car brand Porsche was being squeezed by a sandwich of tariffs and a weak Chinese market. 'It's several billion euros on our balance sheet that this situation costs this year,' he told Reuters. Trump's tariffs on car imports are expected to hit Porsche particularly hard as, unlike VW models and German rivals BMW and Mercedes-Benz, Porsche cars sold in the US are almost exclusively manufactured in Germany."
Volkswagen is negotiating a tariff agreement with the US while targeting growth in affordable electric cars across Europe. Trump-era tariffs announced in April and a turbulent market have cost Volkswagen several billions. The US has offered to cut tariffs from 27.5% to 15%, but that rate remains burdensome for the group. Volkswagen plans significant US investments to secure a separate deal that could lower tariffs further and is considering localising Audi production and increasing exports from the US. Porsche faces acute pressure because most US Porsche cars are built in Germany and China’s weak market compounds the impact.
Read at www.theguardian.com
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