Volkswagen stated Thursday it was analyzing the influence of latest US tariffs on international automobiles after the German auto large was reported to be planning worth hikes to offset greater import costs.
Requested in regards to the studies, a Volkswagen spokesman informed AFP that the carmaker was assessing its choices.
“We have our dealers’ and customers’ best interests at heart, and once we have quantified the impact on the business we will share our strategy with our dealers,” he stated.
Citing a Volkswagen memo to sellers in the USA, commerce publication Automotive Information reported that producer deliberate so as to add an “import fee” to automobiles it ships into the nation.
Volkswagen additionally indicated it could pause rail shipments of autos made in Mexico to the USA, Automotive Information stated.
US President Donald Trump gave German auto producers one other headache on Wednesday after he slapped 25-percent tariffs on automotive imports into the nation.
Carmakers like Volkswagen are already battling a stuttering shift to electrical autos in addition to fierce Chinese language competitors.
Volkswagen, a 10-brand group which additionally consists of Seat and Skoda, stated in December that it could reduce 35,000 jobs by 2035.
Final 12 months, the agency offered simply over a million autos in North America, representing 12 p.c of its gross sales by quantity.
About 65 p.c of the automobiles it sells below its namesake model are shipped into the USA. The identical determine rises to one hundred pc for its high-end Audi and Porsche manufacturers.
Late Tuesday, the pinnacle of the German automotive foyer, the VDA, referred to as on the EU to react “forcefully” to the brand new US tariffs and to barter.
This story was initially featured on Fortune.com
