European Automaker Giant To Make Significant Investment In United States

German automobile manufacturer Volkswagen said it will make a substantial investment in the United States.

The company reportedly has conducted direct communications with the Trump administration regarding tariffs.

CEO Oliver Blume said talks were “fair” and “constructive.”

BREAKING: German automotive giant Volkswagen to make a huge investment into the United States.

Tariffs work. pic.twitter.com/O7VQztK7Y0

— Benny Johnson (@bennyjohnson) May 30, 2025

From The Guardian:

Speaking to Süddeutsche Zeitung, Blume said he had been to Washington himself and had a direct line to the US commerce secretary, Howard Lutnick, but had agreed to keep details of the talks confidential.

He hoped that plans for substantial investment would help shape Trump’s ultimate decision on the 25% tariffs the US imposed on auto imports in April.

“Our primary contact is the US secretary of commerce, but ultimately, the issues also go through the US president’s desk,” he said. “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.”

His interview comes ahead of the latest round of talks between the EU and the US, with Maroš Šefčovič, the EU commissioner for trade, expected to meet Lutnick on the sidelines of an OECD council meeting in Paris on Tuesday.

There is a widespread expectation that whatever the outcome of the talks, a baseline tariff of about 10% will probably endure beyond the July expiry date of Trump’s 90-day pause.

President Trump announced this week he would delay a 50% tariff on the European Union until July 9th.

President Trump Delays 50% Tariff Until July

Per Reuters:

Blume said the Volkswagen Group already employed over 20,000 people directly and over 55,000 people indirectly in the United States, and highlighted a $5.8 billion investment in U.S. company Rivian.

ADVERTISEMENT

"We would build on this with further, massive investments," Blume said.

Such investments should be factored into any decisions regarding tariffs, added Blume, who said he hoped Brussels and Washington would reach a broad deal for all industries.

Blume declined to say when a deal with Washington could be struck, when asked about BMW CEO Oliver Zipse's assessment that tariffs would likely fall from July.

"Of course, I also want it to happen quickly. But it depends on many factors and I can't promise anything."