Last month, we reported that Volkswagen might add a surcharge on new vehicle pricing to compensate for additional tariff costs, but it now appears the automaker has had a change of heart – temporarily. It recently announced that it would hold firm on current pricing through at least the end of May as it determines the impacts of the trade war.
Volkswagen makes three vehicles south of the border in Mexico, including the Tiguan, Jetta, and Taos. While they were compliant with the previous US-Mexico-Canada Agreement, they are subject to the new tariff actions. The company manufactures the ID.4 EV and Atlas at its factory in Chattanooga, Tennessee, but others have to cross international borders.
Kjell Gruner, VW Group of America’s CEO, told reporters, “We have to protect and care for our customers, we have to protect and care for our dealers, for our own business, as well as our suppliers.” Gruner also noted that customers have been asking questions about the tariffs’ impact on VW’s pricing and said the brand had seen a spike in sales as customers prepare for higher prices.
The tariffs are expected to hit supply chains and new-vehicle supply as automakers grapple with additional production and logistics costs. Some, including Mitsubishi, have paused imports to the United States, though President Trump has said he’s considering pausing the actions while car companies regroup.
[Images: Volkswagen]
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