Volkswagen has a plan to deal with increased tariff costs, and it includes charging more for the vehicles it imports. The automaker recently told its dealers that it would tack an import fee to vehicles entering the country starting later this month.
The automaker said it would determine the fee amounts by the middle of April and told dealers to expect fewer incentives. VW also paused rail shipments from its Mexican facilities into the U.S., but it is still importing vehicles by ship. Models affected by the tariffs will be held in port for the “near term,” but even the vehicles VW builds in the U.S. could see price increases.
The Atlas SUV and ID.4 EV are both built in Chattanooga, TN, but VW acknowledged that the Atlas could be impacted due to imported components. The company said it would know more about how deeply the SUV would be hit by May, noting that, “We have our dealers’ and customers’ best interest at heart, and once we have quantified the impact on the business we will share our strategy with our dealers.”
Despite building a few models in the U.S., a majority of the vehicles sold by VW and its brands are imported. Porsche, Audi, Lamborghini, Bentley, and others come from Europe, though some rumors have suggested that Porsche is considering building a factory here.
[Images: Volkswagen, Porsche]
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