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VW's comeback faces roadblock from Trump tax on Mexican Beetles

About 60% of all VWs sold in the US last year were made south of the border

Washington

VOLKSWAGEN AG is bracing for another blow from the US government.

After agreeing to spend more than US$23 billion to clean up its diesel-cheating scandal, the German car giant risks staying in Washington's crosshairs as it tries to start afresh with American consumers.

With the best-selling Jetta and iconic Beetle both made in Mexico and limited production in the US, VW is particularly vulnerable to President Donald Trump's proposed "big border tax" of as much as 35 per cent.

"It would be catastrophic," said Fred Emich, general manager of a Volkswagen dealership in Denver, Colorado. VWs already cost US$2,000 to US$3,000 more than rival models from Honda, Nissan and Toyota, making it difficult...

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