A naukri.com initiative
Insideevs
1M
326
Image Credit: Insideevs
Volkswagen Was Already In Trouble. Tariffs Could Make Things Much Worse
- Volkswagen faced challenges in 2019 with sales drops in China and slow growth in Europe, leading to job cuts.
- Sales in the Americas were a bright spot, especially in the U.S., with significant growth.
- However, the recent tariffs on goods from Mexico and Canada, where VW products are made, pose a major threat to the company.
- Volkswagen's reliance on Mexico for 44% of its U.S. sales makes it highly vulnerable to the new tariffs.
- The U.S. market is crucial for VW, as it struggles with challenges in China and Europe.
- The company has some production in the U.S., but its highest-volume vehicles are made in Mexico.
- With tariffs looming over European imports as well, VW's future in the U.S. market is uncertain.
- Volkswagen may need to increase production in the U.S. and focus on profitable models like SUVs to mitigate tariff impacts.
- CEO Munoz suggests that VW could potentially shift its production to produce more SUVs like the Porsche Cayenne and Macan in the U.S.
- The company faces tough decisions and may have to adjust its product mix and production plans to navigate the challenges posed by tariffs.
Read Full Article
19 Likes
For uninterrupted reading, download the app