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Volkswagen could relocate some production of its high-end Audi line to dodge US tariffs on automobiles ordered by president Donald Trump, the German carmaker鈥檚 CEO said in an interview released Friday.

Europe鈥檚 largest auto manufacturer, which is especially vulnerable to the increase in US tariffs, was in 鈥榗onstructive discussions鈥� with the US administration on the issue, Oliver Blume told the Frankfurter Allgemeine Zeitung newspaper.


Volkswagen, which earlier in April said Trump鈥檚 slew of planned tariffs had dragged down its first-quarter operating profit, wanted to do 鈥榓s much as possible to remain an investor and reliable partner for the United States鈥�, Blume added.

鈥楩or Audi, production in the United States would be in line with our development strategy,鈥� he said.

However he ruled out any American manufacturing for Porsche, despite the US market being the luxury sports car brand鈥檚 largest.

At only around 70,000 vehicles a year the volumes were too small to consider the idea, he said.

Trump last month announced a 25-per cent tariff on autos imported to the United States, which is the number one destination for German car exports.

The Republican has claimed that imposing tariffs would make foreign companies relocate part of their production to the United States.

Volkswagen -- a 10-brand group which also includes Audi, Porsche, Seat and Skoda鈥攕old just over one million vehicles in North America last year, 12 percent of its sales by volume.

With Volkswagen sales in reverse in China in the face of stiff competition from domestic carmakers, particularly on electric vehicles, the US market has become even more important for the German manufacturer.

Despite the presence of a Volkswagen production plant in Tennessee, 65 percent of its flagship VW brand鈥檚 American sales come from vehicles shipped into the United States from Europe or Mexico.

The figure rises to 100 percent for its high-end Audi and Porsche brands.

Blume would not comment on the tariffs鈥� financial impact on Volkswagen, nor on whether it would raise its prices in the United States in response.