Oliver Blume, the CEO of Volkswagen Group, has made it clear that unless the United States rolls back its automotive tariffs, Volkswagen might scrap its long - planned project of building an Audi factory in the U.S. This factory construction plan was first given the green light in 2023. At that time, the Biden administration had pledged to offer subsidies to bolster Volkswagen's investment endeavors in the U.S. market.
However, the tariffs slapped on by the Trump administration have taken a heavy toll on Volkswagen. In the first nine months of 2025 alone, the company suffered losses amounting to €2.1 billion. Given the current heavy tariff burden, Volkswagen simply cannot afford to carry out large - scale new investments in the U.S.
