Volkswagen leader dismisses criticism over investment conferences
Volkswagen CEO Oliver Blume has expressed concern over the negative coverage of the recent "investment summit", while also voicing his worries about the rising U.S. import tariffs. These tariffs, currently at 27.5% for Volkswagen vehicles and parts, have significantly impacted the company's finances, causing a third-quarter profit decline in 2025.
Despite the setback, Blume has announced plans to invest a staggering 160 billion euros over the next five years. The exact strategies for this investment, as well as the strategies to reduce the U.S. import tariff rate, have not been detailed.
The high tariffs have taken a toll on Volkswagen's financial health. In the second quarter of 2025 alone, the company paid approximately $1.4 billion in tariffs, a figure that far exceeds what its U.S. rival, General Motors, paid during the same period. These tariffs have forced Volkswagen to revise its 2025 guidance for revenue, operating margins, and cash flow. Under the current tariff regime, the company now expects a 4% operating profit margin, down from earlier predictions of between 5.5% and 6.5%.
In an effort to mitigate the impact, Volkswagen has been actively lobbying for tariff relief as part of broader trade negotiations between the EU and the U.S. The company has offered more than $10 billion in U.S. investments as leverage in these negotiations with the White House.
The tariffs have not only affected Volkswagen's profits but also its investment plans in the U.S. market. In a more optimistic scenario where tariffs are reduced to 10%, the margin could improve to around 5%.
Blume sees the "investment summit" held at the Chancellery as a positive impetus for Germany's economic location. However, he has criticized the negative coverage the event has received. The nature of the negative coverage and the source of Blume's criticism have not been specified.
[1] Reuters, "Volkswagen to invest $160 billion over five years, seeks U.S. tariff relief", 2025. [2] Bloomberg, "Volkswagen Hits by Trump Tariffs as Profit Tumbles", 2025. [3] Financial Times, "Volkswagen braces for $1.5 billion tariff hit in first half of 2025", 2025.
- The rising U.S. import tariffs have significantly impacted Volkswagen's business, causing a drop in the company's finance sector, as stated in a report by Financial Times in 2025.
- To counteract the effect of these tariffs, Volkswagen is actively engaging in automotive industry negotiations, working towards securing tariff relief from the U.S., as per a news article by Reuters in 2025.
- In the transportation sector, the high import tariffs have not only impacted Volkswagen's profits, but they have also influenced the company's future investment decisions in the U.S. market, according to a Bloomberg report in 2025.
