In a recent report by Reuters, the CEO of Volkswagen Passenger Cars (VLKAF,) Thomas Schäfer, noted that increasing production at its Chattanooga, Tennessee plant to comply with President Trump's tariff rules is not a realistic endeavor for the company.

The American auto industry is working out how to adjust supply chains if the trade war continues, a potentially expensive prospect.

Volkswagen is working on back-up plans for how its passenger car brand could tackle U.S. tariffs on imports from Mexico, while BMW is preparing to absorb the cost, as the auto industry reels from U.S.

According to a new report from CNBC, the makers of the Ultimate Driving Machine said that if the USMCA guidelines remain for tariff guidelines, its imports will be subject to levi

This comes as BMW along with other European carmakers are bracing for impact from US President Donald Trump’s planned tariffs on vehicles imported to the US.