Agency Report –
Wolfsburg, Germany – German auto giant Volkswagen is reviewing adjustments to its North AmeAutrican business in the wake of new US tariffs imposed against Mexico.
Volkswagen’s US subsidiary announced the carmaker would be activating a “comprehensive contingency plan” to protect the company’s businesses, supply chains, dealers and customers.
Immediate measures will be taken to secure supplies and parts in the United States while the company reviews possible adjustments to its production plans and possible imports, the company said, adding that the aim is to preserve as many jobs as possible.
Volkswagen operates a large plant in Puebla, Mexico, which also produces models for the US market. Additional Volkswagen vehicles are built at the carmaker’s US plant in Chattanooga, Tennessee but components used at that plant are sourced from Mexico and will now also be subject to tariffs.
At the same time, Volkswagen appealed to Trump to withdraw the measures, and warned that the tariffs are already putting jobs in the US at risk.
The tariffs will have a “devastating” impact on the US automotive industry, which relies heavily on supply chains that stretch across both the Canadian and Mexican borders, and will also harm US retailers and customers, Volkswagen said.
