Volkswagen (VW) US CFO Arno Antlitz says the German automaker’s US investments “should be taken into account when talking about tariffs”, adding that the company already felt like “an American company” on Bloomberg Television.
The comments come as VW managed to get a one-month reprieve from 25% tariffs that would have affected its operations in Mexico, where a lot of its North American production takes place.
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Antlitz highlighted that the automaker has a major factory in Tennessee that employs more than 20,000 people and provides “safe and well-paid jobs”. The company is also building a factory in South Carolina. When asked whether the imposition of 25% tariffs would result in greater US investments, Antliz said we should “not speculate” but that the company had already set up various initiatives in the US.
“We want to keep our market share in Europe – we are the biggest player in Europe with a 25% market share – reengage in competition in China 2026/27 onwards and grow in the US. Our capital allocation follows these strategic topics and we have a very clear path behind that,” Antlitz outlined.
US President Donald Trump recently modified the 25% tariffs his administration applied to Mexico and Canada. The tariffs will now exempt goods that comply with the US-Mexico-Canada Agreement (USMCA), an updated version of the North American Free Trade Agreement.
“Our North American-assembled VW-brand vehicles meet the USMCA rules of origin and are exempted from the 25% tariffs,” a Volkswagen spokesperson said in a statement.
“As a global automotive manufacturer, we are monitoring developments in North America very closely and assessing any potential effects on the automotive industry and our company as a result of the tariffs announced for the USA, Canada, Mexico and the EU,” it added.
The USMCA rules say that if at least 75% of a vehicle’s parts originate in North America then it is eligible for exemption.
Antlitz’s comments raise the question of whether companies will attempt to leverage existing foreign investments in the US to negotiate tariff relief with the government.
