In a bid to ease the ongoing trade tensions, the German automotive industry is in intense negotiations with the US government, according to sources close to the companies. Specifically, BMW, Mercedes and the Volkswagen Group are working with the US Trade Ministry to develop a mechanism that would offset import and export transactions, the Handelsblatt reported on Thursday.
The aim is to reach an agreement by early July, in exchange for which the German automakers have pledged to invest billions of dollars in the United States. While BMW and Mercedes are planning to expand their plants in South Carolina and Alabama, respectively, Audi, a Volkswagen subsidiary, is considering the establishment of a new factory in the southern United States.
The talks are ongoing, despite the recent threats by US President Donald Trump to increase tariffs on European products once more. Trump had also called on European automakers to invest more in the US. The German companies, however, have declined to comment on the negotiations officially, with BMW CEO Oliver Zipse recently emphasizing the company’s “very solid negotiating position” at the annual general meeting. Notably, the BMW plant in Spartanburg alone exported goods worth ten billion dollars in the past year.