Volkswagen boss Herbert Diess confirmed this week that the German automaker’s potential partnership with Ford would likely include the assembly of VW vehicles in existent Ford factories in the U.S.
"We are in quite advanced negotiations and dialog with Ford Corporation to really build up a global automotive alliance, which also would strengthen the American automotive industry."
- Herbert Diess, CEO of Volkswagen
In addition to using Ford already in place for the assembly of its vehicles, Volkswagen is also mulling the possibility of building a second factory on American soil. The company currently has one plant in Chattanooga, Tennessee, where it builds Passat cars and Atlas SUVs.
Volkswagen officials disclosed the possibility during a meeting with members of the Trump administration in Washington. The American government has been pressuring German automakers to increase production in the U.S. and has threatened increased tariffs on imported vehicles.
While much uncertainty remains regarding the imposition of any tariffs by the U.S. government, Volkswagen is treading carefully and diplomatically, just in case.