Volkswagen stops car deliveries to US, assembled in Mexico
Volkswagen stops deliveries of some cars to the US (Illustrative photo: vwn-presse.de)
Volkswagen has decided to cease car shipments to the US that were assembled in Mexico. The automaker is taking this step to avoid the consequences of new tariffs imposed by the US, according to the industry edition Automotive News.
The large German automaker plans to introduce an import fee on cars assembled outside the US.
Volkswagen of America has informed dealers of this decision, and Automotive News has obtained this information.
As stated in the memorandum from the representatives of the German automaker, the transportation of vehicles by rail from Mexico to the US will be halted.
'Mexican' VW cars
According to data from open sources, several Volkswagen plants in Brazil, Mexico, Argentina, and China produce a range of models that significantly differ from European products. Among them are the Gol, Parati, and Santana models, built on the chassis of previous generations of the Golf and Passat.
The Mexican branch continues to produce the 1.6i Beetle model with a 1.6-liter engine generating 44 hp, and since the beginning of 1998, it has started manufacturing a fundamentally new front-wheel-drive Beetle on the Golf chassis, externally resembling the famous Bug.
In 2003, the Mexican Volkswagen branch ceased production of the VW Beetle. The same year, production of T5 models began. Currently, based on the VW T5, models such as the VW Transporter, VW California, VW Caravelle, and VW Multivan are produced.
Trump's decree on a 25% tariff on cars
As previously reported, US President Donald Trump signed an executive order imposing a 25% tariff on automobiles starting April 3. This applies to cars and spare parts imported into the US.
It is also noted that the new tariffs on automobiles take effect on April 3, while those on spare parts will take effect a bit later.
According to the Federal Register, the White House has tasked the Department of Commerce with creating a procedure within 90 days to add new items to the list, including at the request of American manufacturers.
Earlier, RBC-Ukraine reported that Italian car manufacturers have already felt the impact of the new US tariffs.
