A 25 percent tariff imposed on imported vehicles from all countries outside of the U.S. just took effect yesterday, which figures to impact a host of automakers – and consumers – in some way, shape, or form. Ford has yet to increase prices as a result of these tariffs, and in fact, it even rolled out a new “employee pricing for everyone” plan that all U.S. consumers can take advantage of. However, one of its rivals (and partners) – Volkswagen – is seemingly set to add an additional fee to select VW models in response to these new tariffs.
According to an internal memo seen by Automotive News, VW will add an import fee to the destination charges of all vehicles that it builds outside of the U.S. and imports into that country, and it has already halted rail shipments of vehicles assembled in Mexico to America – though other forms of transit continue. The automaker also stated in the memo that it expects models that it builds in Chattanooga, Tennessee to be impacted as well, but didn’t provide any additional details regarding that matter. The Atlas, Atlas Cross Sport, and ID.4 are built in Tennessee.
Currently, VW builds a trio of models in Mexico that are sold in the U.S. – the Jetta, Taos, and Tiguan while the ID.Buzz, Golf GTI, and Golf R are assembled in Europe. The automaker noted that it’s currently examining the impacts of the new tariffs on a vehicle-by-vehicle basis, adding that it hasn’t made any final determinations regarding pricing changes yet – those details are expected to be communicated to dealers by mid-April. “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,” a VW spokesperson said in a statement.
As for Ford and its dealers, both were stockpiling parts ahead of the start date for these new tariffs, which should give them a bit of breathing room in that regard. Ford has resigned itself to the fact that it will have to pay tariffs on imported vehicles and major components, but is lobbying the Trump administration to exclude lower-cost parts produced in other countries.
Comments
I guess that’s better than the brain-dead Trump administration trying to figure that out, but do I trust the automakers to do any better? Maybe a tiny bit, but not really. What another fiasco.
And that’s the purpose of a tariff. People will see that and realize.. I can buy X Brand that doesn’t have a tariff tacked onto it, and it’s made in America! That’s a win win for our country. VW will realize…hey..let’s build a plant in the US! Novel idea to build businesses and create more jobs!
There is no such thing as an American car. Many parts come from other countries. Get ready to pay more for all vehicles thanks to that waste of life in the White House.
Yes, let’s just snap our fingers and a new auto manufacturing facility will appear, as if by magic!
No magic, but mega savings! For the amount of money (Billions$$$) that will no longer going from USA to Germany, they can build 10 new car manufacturing plants in USA.
Good, nobody really buys them anyway.
There’s an old saying that the Snap On Tool Company used in the 1970’s … “the bitterness of a poorly made product lingers on a long time past the time that the sweetness of a cheap price is forgotten”. As many “recalls” concerning workmanship and parts vehicles owners from Ford, GM, Stelanis/Chrysler, VW have had to endure … the Mexico production idea needs to end. An it shouldn’t have had to be a “tariff” to have made “Made in Mexico” come to a halt … the desire to build the best should have been the reason You’ll never beat American Labor.