Volkswagen—the largest industrial group in Europe—has promised “massive” investment in the U.S., following direct talks with President Donald Trump’s administration.
By approaching the administration directly, company executives hope to get out ahead of whatever results come from the next round of Brussels’ tariff talks with the U.S., expected to happen next week on the sidelines of the OECD meeting in Paris. Foreign direct investment (FDI) from the makers of VW and Porsche vehicles would likely involve significantly expanding the company’s manufacturing base in America.
Group head Oliver Blume described the talks, saying:
So far, we’ve experienced absolutely fair, constructive discussions. Of course, many things are complex, and we’ve agreed not to share any content. I will stick to that.
By partially shifting its production to the U.S., the company wants to protect itself in case European manufacturers end up facing new tariffs (around 10%) when the current trade arrangements expire in July.
The proposed investment is unlikely to resolve all of Volkswagen’s ongoing difficulties. While it still enjoys some European Union protection against competition from China, it recently saw four of its former executives convicted over their involvement in the ‘Dieselgate’ scandal.
