MUNICH: U.S. tariffs have cost Volkswagen, Europe’s largest carmaker, billions of euros so far, its chief executive said on Monday, adding that its key brand Porsche was being squeezed in a “sandwich” of duties and a weak Chinese market.
Speaking to Reuters during the IAA Munich car show, Oliver Blume said “it’s several billion euros on our balance sheet that this situation costs this year”.
The comments lay bare the full impact tariffs are having across the sprawling Volkswagen group, which includes the Audi, Porsche, Cupra and Skoda brands, among others.
So far, Volkswagen has only disclosed a 600-million-euro ($704 million) hit to Audi in the first half of 2025 as well as a 300 million blow to Porsche in April and May.
Both brands have no local U.S. production.
Like its rivals, Volkswagen is still waiting for current U.S. auto import tariffs to fall to 15% from 27.5%, something the administration under President Donald Trump has pledged but so far not delivered.
Blume said it was important how the tariff situation would play out in the future, also pointing to “very positive discussions” the carmaker is holding with the U.S. government around tax breaks for planned investments.
That includes a possible local production plant for Audi, a decision that is expected to be made by the end of the year.
Blume, who also serves as CEO of Porsche, said the luxury sportscar maker was in a “sandwich position more than any other automotive manufacturer” as its two biggest markets – China and the United States – were either faltering or hit by tariffs.
Blume confirmed that the dual CEO role – which has drawn criticism from shareholders and unions – was not permanent, and added it was still open which of the two posts he would give up – REUTERS
