German carmaker VW negotiating on tariffs with U.S. Government

BERLIN: Volkswagen chief executive Oliver Blume has said the German carmaker is in negotiations with the US government over its new import duties on vehicles.

In an interview with the Frankfurter Allgemeine Zeitung (FAZ) newspaper published on Friday, Blume hinted at the possibility of Audi production in the United States, reported German news agency dpa.

"We have a forward-looking strategy with exciting project ideas that are tailored to and attractive for the US market. We are putting that on the table. Constructive talks with the US government are currently under way," Blume said.

The chief executive told the newspaper that he sees industry as part of the solution to the tariff dispute. "Our greatest leverage is to invest in regions around the world, create jobs and forge partnerships."

North America is one of the most important growth regions for the VW Group, Blume added. He noted that Volkswagen wants to do "everything possible" to act as a reliable investor and partner in the US.

"We want to continue expanding. The Volkswagen brand has opportunities in its product portfolio. For Audi, US production would be a step forward in our strategy," Blume explained.

The announcement of new tariffs from the US had shaken car manufacturers in Germany and Europe. The United States is the most important export market for the German car industry.

Last year, the core Volkswagen brand alone sold almost 380,000 new cars in the US. That corresponded to 8 per cent of global sales. The best-selling model was the Atlas SUV, which is only available in North America and is manufactured by VW at its US plant in Chattanooga, Tennessee.

--BERNAMA-dpa

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