
Audi weighs $4.6 billion US plant to ease tariff tensions
Volkswagen
's premium brand Audi could build a plant at a new location in the United States under scenarios being considered to placate President Donald Trump in the tariff conflict, the Spiegel news magazine reported on Friday.
Audi is considering building a plant in the southern US, which would be the more expensive option out of a number of scenarios being considered, with company sources estimating costs of up to 4 billion euros ($4.6 billion), the report said.
An Audi spokesperson said that the company aims to build up more of a presence in the United States.
"We are currently examining various scenarios for this. We are confident that we will make a decision this year in consultation with the (Volkswagen) group on how this will look in concrete terms," she said in an emailed statement, reaffirming earlier comments made by the company.
Audi has no production of its own in the US, but Volkswagen has a plant in Chattanooga, Tennessee and one under construction near Columbia, South Carolina.
Trump's announcement of sweeping tariffs has already racked up hundreds of millions of euros in costs for
German carmakers
heavily reliant on their export business, according to an industry representative.
BMW, Mercedes-Benz and Volkswagen are in talks with Washington over a possible import tariff deal, seeking to use their US investments and exports as leverage to soften any blow, sources have told Reuters.

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Mint
36 minutes ago
- Mint
Continental's Split Shows How Germany's Business Model Is Shifting
(Bloomberg) -- Continental AG intends to become the latest German manufacturing stalwart to dismantle itself, highlighting the pressure to become more agile to weather structural issues at home and respond to mounting competition abroad. Tracing its roots to producing rubber hoof buffers for horses in the late 19th century, the Hanover-based company plans to split into three: the core tire business, rubber components and auto parts. The moves, which Continental will pitch to investors on Tuesday, would unwind decades of diversification and reflect Germany's shifting business model. 'Continental is a very good example of how German companies are finding it difficult to navigate the transformation,' said Stefan Bratzel, head of the Center of Automotive Management in Bergisch Gladbach, Germany. 'This breakup shows one way that the model of a big, one-stop shop doesn't work anymore.' Once favoring sprawling structures, German businesses are getting smaller and more nimble in response to rapidly changing technology and geopolitical volatility. Industrial giant Siemens AG and steelmaker Thyssenkrupp AG already moved to split up years ago. Automakers have shifted as well as the industry reacts to Chinese rivals and the transition to electric vehicles. After Daimler split its cars and truck businesses and Volkswagen AG partially spun off the Porsche sports-car brand as well as its commercial vehicle unit, Continental's strategic shift shows how the supply chain is now starting to adapt. Chief Executive Officer Nikolai Setzer wasn't always so enthusiastic about a breakup. Two years ago, he told investors that the global automotive and industrial group would stick to its three-pillar structure, because it provided better insulation from unforeseen downturns. That changed last August, when Continental announced plans to spin off its auto-parts unit and lowered earnings forecasts due to weak car demand in Europe. At that point, its non-tire rubber unit ContiTech was becoming more of an industrial player and drifting away from the automotive business, according to the 54-year-old executive. A second carveout would leave Continental with a tires-only portfolio, which nets the biggest profits. 'The common markets of our three sectors were reducing or diminishing over time — the sectors had different purposes, customers and products, so synergies were limited,' Setzer said in an interview. 'As soon as you have different entities within a company, you have to see whether the synergies outweigh the challenges of holding them together.' Headwinds have increased in Germany after two years of contraction and minimal growth projected this year. For Europe's largest economy, the changed corporate strategy is not without risk. Smaller companies could be more easily swallowed by rivals or relocate to escape smothering bureaucracy and high labor costs. That puts pressure on Chancellor Friedrich Merz's administration to move fast on reforms that can revive prospects for domestic companies, even though hundreds of billions of euros in planned debt-financed government spending has brightened the mood. While the carveout of parts business Aumovio is a done deal, union leaders are concerned that separating rubber unit ContiTech from the tire business would add costs and put jobs at risk. They're threatening to use their control of half the seats on the supervisory board to try to block the move. What Bloomberg Intelligence Says: The restructuring will make Continental a pure-play tire business, which could position it for a rerating. — Gillian Davis, industry analyst (Click here for the full report) 'There are considerable synergies between tires and ContiTech,' Matthias Tote, the unit's works council chief and a supervisory board member, said in an internal memo sent to workers on Monday. Jörg Schönfelder, another employee representative on the board, said executives are moving ahead 'without adequately assessing the potential risks.' The company has already announced plans to close five ContiTech sites completely and two partially, which will cut hundreds of jobs. Despite the resistance, Chairman Wolfgang Reitzle can break the deadlock, though the tensions could spark legal challenges and delay the process. The motivation for management is clear. With the stock effectively flat-lining over the past five years, Continental is worth about a third less than rival Michelin, which has recently moved in the opposite direction and expanded its non-tire business. Continental's breakup will happen in two stages with the listing of Aumovio planned for September. The sale of ContiTech — which employs almost 40,000 people globally and makes an array of rubber and plastics products — is targeted for next year. 'The auto spinoff is the right thing to do, just probably five years too late,' said Harry Martin, an analyst at Bernstein. 'It's not unleashing a lot of growth potential.' To be sure, some German conglomerates remain intact. Robert Bosch GmbH, a major automotive supplier and industrial tech firm, is shielded from breakup pressure by its foundation ownership. Merck KGaA, which is active in pharmaceuticals and specialty chemicals, and consumer goods maker Henkel remain largely untouched. Conglomerates once promised stability and efficient capital allocation across sectors, but sprawling portfolios have fallen out of favor as investors push for focus and higher returns. Continental's breakup reflects a broader retreat from the model, as complexity and weak synergies increasingly outweigh the benefits of diversification. For Setzer, Germany's economic woes are only part of the driving force to split up. The company has seen 'tempered growth' in its global markets, specifically in Europe and North America, he said. In China, the automotive unit's sales have been falling short of the market and that's likely to continue, according to Aumovio's top executive. 'In such an environment where you need to adapt fast because visibility is so low, where customers can't always give you reliable forecasts, that's where you need small, agile teams,' Setzer said. 'The better you can adapt now, the better you will profit in the future.' --With assistance from William Wilkes and Isolde MacDonogh. More stories like this are available on


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an hour ago
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The Hindu
2 hours ago
- The Hindu
Liverpool signs Florian Wirtz from Bayer Leverkusen for huge fee that could climb to $156 million
Liverpool delivered a huge statement of intent after winning the Premier League title by signing Germany star Florian Wirtz from Bayer Leverkusen on Friday (June 20, 2025). The transfer fee could climb to 116 million pounds ($156 million), which would make the 22-year-old Wirtz the most expensive player in the history of British soccer. 'I feel very happy and very proud," Wirtz told the official Liverpool website. "Finally it's done and I was waiting for a long time. 'I'm really excited to have a new adventure in front of me. This was also a big point of my thoughts: that I want to have something completely new, to go out of the Bundesliga and to join the Premier League. 'I will see how I can perform there. I hope I can do my best. I spoke also with some players who played there and they told me that it's perfect for me and every pitch is perfect, you can enjoy every game. I'm really looking forward to playing my first game.' Liverpool, determined to keep moving forward despite securing a record-tying 20th English top-flight title, splashed out a club record to bring in not only one of the best players from Germany, but one of the top youngsters in the world. Wirtz has been a key first-team player for Leverkusen since he was 17. He was the outstanding attacking player in the team that won the Bundesliga and German Cup in 2023-24 without losing a game, and is a regular in Germany's national team. It's why Liverpool was ready to pay a guaranteed 100 million pounds, plus 16 million pounds in potential add-ons. Wirtz had two years left on his contract, giving Leverkusen leverage in negotiations. The Premier League record for an initial fee was set when Chelsea signed Enzo Fernandez from Benfica for 106.7 million pounds ($131.4 million at the time) in 2023, before the London club agreed to pay up to 115 million pounds ($146 million at the time) for midfielder Moises Caicedo from Brighton later that year. Liverpool manager Arne Slot arrived last summer and signed just one outfield player — forward Federico Chiesa — for the 2024-25 season. Chiesa barely played and the Reds won the league by 10 points, after which Slot and some of his players — including Virgil van Dijk — spoke about there being big plans for this transfer window. Having already signed right wing back Jeremie Frimpong from Leverkusen for a reported 35 to 40 million euros ($39.7 million to $45.4 million), Liverpool has returned to the German club to take Wirtz, who rejected an opportunity to join Bayern Munich — a Bundesliga rival which has long pursued him. One obstacle to that move was the size of the fee Leverkusen wanted. Another was concern over how Wirtz might fit into the same lineup as Jamal Musiala, Germany's other standout young attacking midfielder. Losing Wirtz leaves Leverkusen and its new coach, Erik ten Hag with an even bigger rebuild following the departure of Xabi Alonso for Real Madrid. Just after his 17th birthday, Wirtz became the youngest player in Leverkusen's history when he made his debut against Werder Bremen in May 2020, in an empty stadium at the height of the COVID-19 pandemic. A month later he was the youngest player to score in Bundesliga history, though that record has since been topped. Wirtz's versatile attacking midfield play was a vital ingredient in Alonso transforming Leverkusen into a team that could win the Bundesliga and German Cup without losing a game. He and Alonso stayed for another sometimes-disappointing season which ended with second place to Bayern in the league and a loss to Bayern in the Champions League round of 16. Wirtz showed he can deal with adversity when a cruciate ligament tear in his knee ruled him out for almost all of 2022 — including Alonso's first games as coach — before he returned to power Leverkusen to its league and cup double in 2023-24. Wirtz has become a vital player for the German national team with 29 caps. He played all five of its matches at Euro 2024 on home soil. He's also had to contend with hostility from fans of his boyhood club Cologne, which he left for nearby Leverkusen at 16. Liverpool and Bayern were reportedly interested then, too. Cologne claimed that deal broke an agreement between the clubs not to pursue each other's youth players. Leverkusen argued Wirtz was so talented that he counted as a first-team player despite his age. Cologne and Leverkusen are barely 10 kilometers (6 miles) apart, so going to Liverpool will be the first time that Wirtz has moved away from his roots. His parents Hans Wirtz and Karin Gross have played a big role in his career — they were also his agents until last year — and he's close to his older sister Juliane, a professional player for Werder Bremen in the women's Bundesliga. Wirtz's decision to turn down Bayern and the Bundesliga for Liverpool has caused some raised eyebrows in Germany. 'I wouldn't have thought Florian would make this switch so early,' former Germany great Lothar Matthäus told broadcaster n-tv last month. 'But he wants to get out of his comfort zone.' Wirtz seems likely to slot in as the No. 10 at Liverpool, a more creative solution in that role compared to the hard-running Dominik Szoboszlai. Whether Slot also now pushes for a new striker as an upgrade to current options Diogo Jota and Darwin Nunez remains to be seen. Szoboszlai could drop back into one of the two deeper midfield positions, competing with Ryan Gravenberch, Alexis Mac Allister and Curtis Jones.