Volkswagen said Thursday it was examining the impact of new US tariffs on foreign cars after the German auto giant was reported to be planning price hikes to offset higher import charges.
Asked about the reports, a Volkswagen spokesman told AFP that the carmaker was assessing its options.
“We have our dealers’ and customers’ best interests at heart, and once we have quantified the impact on the business we will share our strategy with our dealers,” he said.
Citing a Volkswagen memo to dealers in the United States, trade publication Automotive News reported that manufacturer planned to add an “import fee” to cars it ships into the country.
Volkswagen also indicated it would pause rail shipments of vehicles made in Mexico to the United States, Automotive News said.
US President Donald Trump gave German auto manufacturers another headache on Wednesday after he slapped 25-percent tariffs on car imports into the country.
Carmakers like Volkswagen are already struggling with a stuttering shift to electric vehicles as well as fierce Chinese competition.
Volkswagen, a 10-brand group which also includes Seat and Skoda, said in December that it would cut 35,000 jobs by 2035.
Last year, the firm sold just over one million vehicles in North America, representing 12 percent of its sales by volume.
About 65 percent of the cars it sells under its namesake brand are shipped into the United States. The same figure rises to 100 percent for its high-end Audi and Porsche brands.
Late Tuesday, the head of the German car lobby, the VDA, called on the EU to react “forcefully” to the new US tariffs and to negotiate.
This story was originally featured on Fortune.com
