STOCKS | Volkswagen Seeks to Revive Its U.S. Business

Volkswagen is facing pressure from U.S. tariff and electric vehicle policies as it tries to expand in the large and profitable U.S. market. According to Sina Finance, the company is also making a second management change in its U.S. operations within two years after a sharp drop in sales. Senior executive Marco Schubert will take over Volkswagen's North American business in October. Volkswagen has only one small assembly plant in Chattanooga, Tennessee, and most of the vehicles it sells in the U.S. are imported. The company estimates trade policy costs it the equivalent of $5.8 billion a year. Volkswagen Chief Executive Officer Oliver Blume has also invested heavily in Scout Motors, aiming to revive the classic SUV brand and turn it into a fully localized U.S. electric vehicle player. The Scout factory in South Carolina is still under construction and is not expected to begin vehicle deliveries until 2028. Volkswagen plans to streamline its management team and cut another 50,000 jobs, on top of about 50,000 layoffs already agreed over the past two years. Blume said vehicle prices are rising and sales are becoming more difficult because the rules of the game have changed completely.