VW: First Trump hammer in the middle of the crisis! Employees have to tremble

News38 VW: First Trump hammer in the middle of the crisis! Employees have to tremble Benjamin Pogadl • 4 hours • 3 minutes reading time As if VW didn't have enough on its plate at the moment! While in Germany almost all plants are running on a tight budget, its colleagues in North America have to prepare for a violent earthquake. The new US President Donald Trump has declared a new tariff battle and the car manufacturers are also bracing themselves for severe collateral damage. The effects could be particularly serious for VW's mega-plant in Puebla, Mexico. In Canada, the company had planned to build a new battery cell factory. The trade war that has now been instigated is likely to shake up production considerably - and the consequences will also be felt in Germany. VW: Trump declares trade war 25 percent on imports from Mexico and Canada - just 10 percent on energy imports from Canada. High tariffs are intended to weaken the two nations economically compared to the USA. The German car industry is also feeling the effects. Almost all major German car manufacturers - including VW - use Mexico as a relatively cheap production location to supply the US market from there. A reaction to the Trump tariffs seems inevitable. The day after the announcement, however, VW is initially cautious. "As a global car manufacturer, we are monitoring developments in the USA very closely and are assessing any effects on the automotive industry and our company that are possible as a result of the announced tariffs on imports from Canada and Mexico into the United States," a spokesman told the German Press Agency. The group is promoting open markets and stable trade relations, because these are essential for a competitive economy and especially for the automotive industry. Expert with bitter fears And hope dies last: "We are counting on constructive talks being held between the trading partners in order to ensure planning security and economic stability and to avoid a trade conflict," said the VW spokesman. According to its own information, VW employs around 13,000 people in its two plants in Puebla and Silao. Every year, over 300,000 vehicles roll off the production line in Puebla (in 2023, there were 349,227), and over 400,000 engines in Silao. The VW Jetta, Taos and Tiguan, among others, are manufactured in Mexico. It is quite possible that with the introduction of the Trump tariffs, some of this production will be relocated to VW's sites in the USA.