EVs & Trade: Volkswagen Group's CEO on Trump's Davos Speech

Volkswagen Group CEO Oliver Blume has outlined his stance on US President Donald Trump's speech at the World Economic Forum's Davos meeting.

The President discussed NATO, his administration’s economic achievements and his vision around tariffs.

Speaking to German newspaper Handelsblatt, Oliver welcomed the absence of new tariff measures but emphasised the need for stability.

“The positive aspect in the end was that the US President dropped the idea of additional tariffs," he said.

This links to the CEO’s overarching strategy for the firm, involving deep international cooperation through a “region-for-region” approach, focusing on tailored strategies for China and North America, strategic tech partnerships and collaborative R&D to boost efficiency and accelerate electrification.

He told Handelsblatt that the EU reacted “correctly” to the tariff threats from Washington, saying: “Europe has many strengths and can act with confidence. That’s why clear positions are important.”

European response to tariff threats

The continuing tariff environment could bring significant limitations for the company's North American ambitions.

Oliver explained that while he felt relieved by the absence of additional tariffs, the current situation remains problematic.

"With the tariff burden remaining unchanged, a large additional investment isn't financially viable," he said.

This reality means that progress on a planned Audi manufacturing facility in the United States hinges entirely on changes to existing automotive tariffs.

The Volkswagen Group owns Audi and has been exploring various options for a potential new production site.

Any decision on significant US investment will depend on clearer economic frameworks emerging from ongoing international discussions.

US manufacturing expansion plans

According to Oliver, the company has identified several possible locations for a new factory.

This includes land it already owns in South Carolina.

Other states have also signalled their interest in hosting the facility.

“We’ll make a decision once the parameters are clear,” he explained.

Currently, Audi vehicles sold in the US market are imported from international production sites.

These are primarily located in Europe and Mexico.

The brand is now considering whether it could use VW Group's existing American infrastructure to create a twin plant capable of producing its vehicles, including electric models.

For this to become a viable option, the CEO said: “Reduction of costs in the short term and reliable business conditions in the long term are what we need.”

Sales performance and electrification

Oliver's cautious approach to US investment reflects the company's recent global sales figures.

According to VW Group, worldwide deliveries in 2025 reached 8.98 million vehicles.

Its BEV deliveries increased by 32% year-on-year, reaching 983,000. 

Despite the uncertainty surrounding the Audi plant decision, VW Group plans to introduce more than 10 new EV models in China.

The company will also launch several additional all-electric vehicles globally, including the ID Polo and the ID Cross compact SUV.