Volkswagen stated on Thursday that it was analyzing the impact of new US tariffs on foreign cars after reports suggested that the German auto company was considering raising prices to counteract higher import charges.
When asked about the reports, a Volkswagen spokesperson informed AFP that the company was evaluating its options.
“We have the best interests of our dealers and customers in mind, and once we have determined the impact on the business, we will discuss our strategy with our dealers,” the spokesperson said.
According to a memo from Volkswagen to its US dealers, cited by trade publication Automotive News, the manufacturer intended to include an “import fee” on cars shipped to the country.
Additionally, Volkswagen indicated that it would temporarily halt rail shipments of vehicles produced in Mexico to the United States, as reported by Automotive News.
US President Donald Trump imposed 25% tariffs on car imports to the country on Wednesday, causing further complications for German auto manufacturers like Volkswagen.
Companies such as Volkswagen are already facing challenges with the transition to electric vehicles and strong competition from Chinese companies.
In December, Volkswagen, a conglomerate of 10 brands including Seat and Skoda, announced plans to cut 35,000 jobs by 2035.
Last year, the company sold slightly over one million vehicles in North America, making up 12% of its total sales by volume.
Approximately 65% of the vehicles sold under the Volkswagen brand are shipped to the United States. This percentage rises to 100% for its premium Audi and Porsche brands.
Recently, the head of the German car association, VDA, called on the EU to respond “forcefully” to the new US tariffs and engage in negotiations.
