20 hours Ago By Teresa Mettela
VOLKSWAGEN has placed an “import fee” on its cars as President Trump’s proposed tariffs loom over the auto industry.The automaker decided to halt shipments of vehicles that were built in Mexico.GettyVolkswagen will be adding an import fee to its vehicles[/caption]GettyThis comes after President Trump’s proposed tariffs on the auto industry[/caption]GettyVolkswagen said it would also stop rail shipments of cars that were built in Mexico[/caption]Any Volkswagen vehicle that was assembled outside the country has been hit with an extra charge, as reported by Automotive News.
Automotive News obtained a memo that stated the automaker has ceased rail shipments of cars that were built in Mexico. This comes after President Trump’s proposed 25% tariffs on cars and car parts coming from Mexico and Canada.The memo was dated April 1 but the impact of the tariffs will affect Volkswagen pricing starting April 3.
With Trump’s tariffs, each time an auto part crosses a checkpoint it will be taxed.The proposed tariffs could have a major impact on the auto industry and car companies are struggling to keep up. Meanwhile, consumers are worried that they’ll have to pay more for cars.
A Volkswagen representative told Automotive News that they are still figuring out what the cost will look like per vehicle. That decision is still being made and could depend on a number of factors. “It’s important to note that no vehicles assigned to dealers in early April will have the fee added,” the memo said.
According to the memo, full pricing details will be announced in 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 spokesperson said in a statement.While the German automaker has paused shipments from Mexico, vessel transport from factories in Puebla and Europe will continue.
However, any vehicle that is delivered to US ports after tariffs are announced will be stopped at port and won’t be processed, charged, or delivered to dealers. Volkswagen plans to introduce a two-phase vehicle allocation program this month. During the first cycle, which would start April 7-8, vehicles would not be affected by tariffs or additional fees.
Beginning April 22-23, impacted vehicles would include the new import fee.“Our team is reviewing our full media spend plan for April with the goal of redistributing resources and increasing focus on ‘consideration’ marketing,” the memo said. “This strategic shift will help maintain brand momentum while we navigate the tariff changes.
”Volkswagen did not immediately respond to The U.S. Sun for comment.
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