Volkswagen, the car manufacturer from Germany, has informed its American dealerships that it will be adding a new "import fee" to the prices of its cars brought into the U.S. This change is set to begin later this month.
This step is taken in response to the new 25% tariffs on car and auto parts imports imposed by President Trump. The tariffs on vehicles started last Thursday, and those on parts will start on May 3rd.
An internal note from Volkswagen to its dealers, which was seen by The New York Times, mentioned that the specific amount of the import fees would be decided by mid-April. The company also said it would reduce its sales promotions and has already stopped sending cars by train from its factories in Mexico to the U.S., although sea shipments continue.
Additionally, the company mentioned holding cars at ports for the short term due to the tariffs. It specifically highlighted that the price of the Volkswagen Atlas SUV, made in Chattanooga, Tennessee, might go up because it relies on some imported parts. The full impact will likely become clearer by May.
Volkswagen, which also owns the Audi and Porsche brands, imports nearly all of its cars sold in the U.S. The company also makes the ID.4 electric SUV in Tennessee.
Volkswagen stated they issued the memo to ensure transparency during these uncertain times and affirmed their commitment to keeping the best interests of their dealers and customers. They plan to reveal more detailed plans once they evaluate the overall impact of the tariffs.
Other car manufacturers are also adjusting their strategies in response to the tariffs. Stellantis, the parent company of Jeep, Ram, Dodge, and Chrysler, announced they are temporarily stopping production at one plant in Mexico and another in Canada.
This decision affects the Chrysler Pacifica minivan and Dodge Charger production in Windsor, Ontario, and the Jeep Compass and Wagoneer S production in Toluca, Mexico. These changes will result in about 900 job cuts in Indiana and Michigan.
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