Despite looming US tariffs that would impact the German auto industry, major manufacturers Volkswagen and Mercedes are opting for cooperation with the new US President Donald Trump and his administration.
Volkswagen Group CEO Oliver Blume told the “Bild am Sonntag” that the company has been active in the US for over 75 years, employing tens of thousands of people. “We feel part of the US society. The Volkswagen Group will also work with the future US administration in a proven way” he said.
Blume added that the company is investing sustainably in the region, for example, with over five billion euros in its Chattanooga plant or over five billion euros in a joint venture with Rivian.
Mercedes-Benz CEO Ola Källenius is also betting on the US, stating, “We must enter into a constructive dialogue with the American government to create reliable political frameworks for prosperity, employment, and growth.”
Mercedes has significant plants in the US, with over 11,000 employees, and, with suppliers, more than 80,000 people in the Mercedes system. “Mercedes-Benz is thus also an American company. We are one of the largest industrial exporters from the US and contribute to improving the American economy” Källenius said.
According to Hildegard Müller, President of the German Association of the Automotive Industry (VDA), US tariffs on German cars would ultimately harm the US more than benefit it: “In the US, the German automotive industry employs 138,000 people, with 48,000 working for the automakers and an additional 90,000 for German suppliers. Tariffs would therefore directly impact the US economy in this sector, and products for US consumers would be more expensive.