Volkswagen can only build the Audi plant in the USA under consideration if President Donald Trump reduces the burden of tariffs.
Oliver Blume, the head of the Volkswagen Group, to which Audi belongs, made this clear in an interview with the “Handelsblatt”. “If the burden of tariffs remains unchanged, a large additional investment cannot be financed,” said Blume in response to a corresponding question. “What we need are short-term cost relief and long-term, reliable framework conditions.”
Audi has been thinking about building a plant in the USA since 2023. The reason given at the time was new subsidies in the United States, which made building a plant economically interesting. Meanwhile, the US government under Trump is putting pressure on European car manufacturers with tariffs. This burdened the VW Group with EUR 2.1 billion in the first nine months of 2025, as Blume said.
The CEO nevertheless spoke of a “forward strategy” for the US business and clear growth opportunities. However, Blume called the once formulated goal of ten percent market share in the USA an old goal. Today, Volkswagen must move forward step by step.
There have been some discussions with the government in Washington about the construction of an Audi plant, for example with President Trump and his Secretary of Commerce Howard Lutnick – but still without the necessary results. “Anyone who invests and creates jobs and added value must also have advantages on the cost side,” demanded Blume. “We remain open to solutions that benefit both sides.”
The dispute over the future of MAN in Salzgitter continues
IG Metall and the works council at the Salzgitter site of the bus and truck manufacturer MAN have presented their own future concept for the plant – and are criticizing the employer’s course. The union said the company was endangering the industrial prospects of the site, even though the economic situation was stable. Employees’ suggestions have not yet been taken seriously.
Employee representatives are particularly critical of personnel planning. In one scenario, the number of employees could fall from currently around 2,161 to fewer than 852 by 2032.
When asked, IG Metall explained that its future concept was divided into three stages: concrete measures for the further development and future viability of the axle, already calculated projects in the circular economy environment and further strategic approaches in the area of e-components.
Agreement to cut 2,300 jobs in Germany
In November last year, the company, which belongs to Volkswagen (VW), announced that it wanted to cut 2,300 jobs in Germany over ten years. 600 of them are to be eliminated in Salzgitter.
A few days ago there was an agreement with the employee side: MAN wants to invest almost one billion euros in German locations by the end of 2030. In addition, job security was agreed until the end of 2035, which – depending on the company’s development – can be extended until 2040.
“They always want more”
However, this agreement does not apply to Salzgitter. There was a top-level meeting between both parties on Friday, according to negotiating circles. “The same promises were on the table as for all other employees in Germany.” But that wasn’t enough for the employees. “New demands were continually put on the table and red lines were crossed.”
The most recently published demands were met. “They want more and more and don’t even notice that they just keep going, to the detriment of all employees,” sources say. The negotiations were finally broken off. Salzgitter is threatened with conversion into a pure logistics location and the final withdrawal of production in the coming years.
WOLFSBURG/SALZGITTER (dpa-AFX)
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