Volkswagen America will indicate on new vehicles’ window stickers, which describe the pricing and specs of the vehicle, the cost of the tariff that has just been imposed on vehicles imported into the U.S.
As reported by Automotive News, the automaker also confirmed via an internal memo sent to dealerships that it has suspended rail shipments of vehicles built in Mexico to the U.S. Shipping by boat from the Puebla factory in Mexico, as well as from Europe, continues as planned.
VW has said it expects the tariffs to have an impact on the prices of vehicles imported from Mexico and Europe starting April 3rd. The internal memo, dated April 1st, indicates that production at the Chattanooga assembly plant in Tennessee will also be affected, without specifying how.
Three models made in Mexico
Volkswagen manufactures three models in Mexico, all destined for the North American market. Those are the Jetta sedan as well as the Taos and Tiguan SUVs, the latter being the brand's best-selling product in the U.S.
Volkswagen hasn’t yet decided on the precise increases that will affect each model, as it’s still studying how the tariffs will impact each of its products.
Like other companies, Volkswagen stocked up on vehicles and components before the tariffs came into effect, so it has an inventory of 50 to 60 days. However, this is similar to what it usually has in reserve.
For the moment, any vehicle arriving from abroad in an American port will be held there and won’t be processed immediately or delivered to dealerships, this as the company continues to study its options. It aims to have a plan by mid-April.
As for domestic production, Volkswagen manufactures the Atlas and Atlas Cross Sport SUVs, as well as the ID.4 electric SUV at its Tennessee plant. In principle, those models shouldn’t be affected, but on the other hand, the company may choose to spread the cost of the tariffs across its whole range, in order not to penalize certain models. Remains to be seen.
The new ID. Buzz electric SUV and the Golf GTI and Golf R are assembled in Europe and subject to tariffs as per yesterday’s announcement by the White House.