VW hopes for own tariff deal with 'attractive' investments

Europe's largest car manufacturer Volkswagen (VW) is hoping investment commitments can help it negotiate further concessions on US tariffs once Washington and the European Union strike a broad trade deal, CEO Oliver Blume told investors on Friday.

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As they wait for the outcome of trade talks between the US and the EU ahead of an August I deadline, European carmakers are also looking at possible investments or production shifts that might appease President Donald Trump and bring down tariffs.

"We hope that it will come to a well-balanced deal between the US and the EU, which allows fair trade between the regions," Blume told investors after reporting a second quarter heavily affected by tariffs.

Blume said he was expecting a 15% tariff for the EU, similar to one the Trump administration agreed with Japan earlier this week.

An additional deal with Volkswagen would come on top of this, once the tariff row is ended, Blume said. Trump imposed a 25% tariff on car and parts imports in April.

"We have a very attractive investment package we will do there," he said, adding that the company has been in “good discussions” with the US government.

Executives from major European companies have lobbied the White House for relief for their industries from tariffs and many have pledged to invest in the United States to appeal to Trump's ambition to boost US manufacturing.