By Dominic Chopping
Volkswagen expects conditions in the auto industry to remain challenging going forward, as it noted the operating environment is "strewn with massive risks" created by external factors.
In a speech manuscript released in conjunction with the company's annual shareholder meeting Friday, the company's Chief Executive Oliver Blume said the group must take action to ensure its cost base is more robust as the coming years will determine who will play a role in the automotive world of the future.
"We must consistently build up our product advantages and continue to work with discipline on a competitive cost structure," he said.
On top of continuing challenges in China, where intense competition has triggered a price war, President Trump's tariff regime has thrown the industry into further turmoil as cars and parts imported to the U.S. now face hefty duties.
Blume expects 2025 will be another demanding year in China, with continued competitive pressure. However, the German auto group is continuing with its strategy of developing cars in China fully tailored to local customers and plans extensive model launches in the country from 2026.
In North America, the company saw deliveries grow over 6% last year and it is aiming for further growth in the region, despite the challenges surrounding current trade policy.
"North America remains a key element in the Volkswagen Group's growth strategy," Blume said. "We believe this region has significant potential."
He said the company is formulating a vision for North America, with a clear plan of measures and responsibilities, including products that are geared to American customers.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
05-16-25 0444ET
