VW CEO Criticizes US-EU Tariff Deal, Focuses on US Investment

Asymmetric Tariff Deal Concerns

• 💡 The VW CEO criticizes the US-EU tariff deal, stating it's an asymmetric agreement that distorts competition in Europe.
• ⚠️ He emphasizes that the 15% tariff would be a burden, and the company does not appreciate the current deal.

US Investment Strategy

• 🇺🇸 Volkswagen is counting on its own offer of investing heavily in the U.S. as part of its growth plan to secure better trade terms.
• 🤝 Talks are ongoing with the US government, with hopes for a quick solution supported by US government investment in areas like employment and supply chain building.
• 📈 This investment is seen as a better multiplier for the US economy than tariffs.

Scout Brand Expansion

• 🚀 Volkswagen is investing in the Scout brand, viewing it as a key driver for US growth, particularly in the pickup and rugged SUV segments.
• 🔋 The new Scout vehicle will feature a range extender with an internal combustion engine, offering a substantial mileage of around 800 miles, which is considered attractive for the US market.

Luxury Brand Profitability Challenges

• 📉 Audi and Porsche are facing profitability struggles due to their global market positioning and current trade circumstances.
• 🇨🇳 Porsche is particularly affected by an 80% market breakdown in China and trade situations in the U.S., which together account for over 60% of its volume.
• 🛠️ Audi is undergoing a complete restructuring and has introduced a new design language, with promising initial reception.
• 🌍 The CEO distinguishes these global players from Skoda, which operates primarily in Europe with lower labor costs, explaining the different performance levels.