*

CEO says Porsche brand in 'sandwich' between China,

tariffs

*

Volkswagen in talks with Washington over investment tax

breaks

*

Undecided whether Blume will give up VW or Porsche CEO

role

(Adds context in paragraph 3-4, CEO comments in paragraphs 7,

10)

By Christoph Steitz and Louisa Off

MUNICH, Sept 8 (Reuters) - U.S. tariffs have cost

Volkswagen, Europe's largest carmaker, billions of

euros so far, its chief executive said on Monday, adding that

its key brand Porsche was being squeezed in a

"sandwich" of duties and a weak Chinese market.

Speaking to Reuters during the IAA Munich car show, Oliver

Blume said "it's several billion euros on our balance sheet that

this situation costs this year".

The comments lay bare the full impact tariffs are having

across the sprawling Volkswagen group, which includes the Audi,

Porsche, Cupra and Skoda brands, among others.

So far, Volkswagen has only disclosed a 600-million-euro

($704 million) hit to Audi in the first half of 2025 as well as

a 300 million blow to Porsche in April and May.

Both brands have no local U.S. production.

Like its rivals, Volkswagen is still waiting for current

U.S. auto import tariffs to fall to 15% from 27.5%, something

the administration under President Donald Trump has pledged but

so far not delivered.

Blume said it was important how the tariff situation would

play out in the future, also pointing to "very positive

discussions" the carmaker is holding with the U.S. government

around tax breaks for planned investments.

That includes a possible local production plant for Audi, a

decision that is expected to be made by the end of the year.

Blume, who also serves as CEO of Porsche, said the luxury

sportscar maker was in a "sandwich position more than any other

automotive manufacturer" as its two biggest markets - China and

the United States - were either faltering or hit by tariffs.

Blume confirmed that the dual CEO role - which has drawn

criticism from shareholders and unions - was not permanent, and

added it was still open which of the two posts he would give up.

($1 = 0.8525 euros)

(Reporting by Christoph Steitz and Louisa Off; Additional

reporting by Ayhan Uyanik; Editing by Friederike Heine and

Emelia Sithole-Matarise)