Volkswagen has taken a multi-billion-euro hit from U.S. auto import tariffs this year, Chief Executive Oliver Blume said on Monday, adding that its Porsche brand is under particular pressure as weak demand in China coincides with high duties in the United States.
“It’s several billion euros on our balance sheet that this situation costs this year,” Blume told Reuters on the sidelines of the IAA Munich car show. His remarks highlight the extent to which tariffs are weighing on Europe’s largest carmaker, which also owns the Audi, Cupra and Skoda brands.
Volkswagen previously disclosed a €600 million ($704 million) impact on Audi in the first half of 2025 and a €300 million hit to Porsche during April and May. Both brands currently lack local production facilities in the United States, leaving them more exposed to tariffs.
The carmaker, like its rivals, is awaiting a long-promised reduction of U.S. import tariffs to 15% from the current 27.5%. The Trump administration has pledged the cut, but has yet to implement it. Blume said Volkswagen was engaged in “very positive discussions” with U.S. officials regarding tax incentives for planned investments, including the possibility of a local Audi plant. A decision is expected by the end of the year.
Blume, who also heads Porsche, said the sports car maker faced a uniquely difficult environment. “Porsche is in a sandwich position more than any other automotive manufacturer,” he said, noting that its two largest markets — China and the United States — were either weakening or constrained by tariffs.
Pressure is also mounting at home over Blume’s dual leadership roles. In early September, Volkswagen’s labour chief reiterated calls for him to step down from one of his two posts, arguing that the responsibilities at both Volkswagen and Porsche AG could not be sustained in the long term. Blume has held the positions since Porsche’s stock market debut in 2022, a structure that has prompted repeated demands from investors and employees for clearer separation at the top.
Blume acknowledged the concerns, stressing the dual role was not permanent. “It is still open which of the two posts I would give up,” he said.
Source: Reuters