By Nina Trentmann 

Germany's Volkswagen AG, like many companies, is grappling with global uncertainties ranging from trade tensions to Britain's exit from the European Union to slowing demand in China.

The car manufacturer, one of the world's biggest by sales, returned to the U.S. bond market in November following a yearslong absence after its diesel emissions test cheating scandal -- a move that was orchestrated by finance chief Frank Witter.

CFO Journal spoke with Mr. Witter about the challenges facing his company.

Trade disputes a reason for concern. Mr. Witter said the U.S., European Union and China need to "stay in talking terms" as they seek to work out trade differences. Wolfsburg-based Volkswagen, which sells cars in more than 150 countries, welcomed the 90-day window for talks between the U.S. and China, agreed to by President Trump and President Xi Jinping this month. Mr. Witter declined to comment on what a potential 25% tariff on European car exports to the U.S. would mean for Volkswagen.

North American operations. Mr. Witter was guarded when asked about whether Volkswagen would expand its plant in Chattanooga, Tenn., or build a second site for the production of electric vehicles in the U.S. Volkswagen has spare capacity in Chattanooga and plans to use the plant to the "fullest extent," Mr. Witter said. The company recently opened a factory in Mexico and is assessing the implications of the U.S.-Mexico-Canada Agreement, which was signed in November. Volkswagen Chief Executive Herbert Diess last week took part in a meeting between Mr. Trump and German car executives.

China remains a growth market, despite a slowdown. Auto sales in China fell for a third straight month in September, a deterioration that could result in the country's first yearly decline in passenger-car sales in almost three decades. "The tariffs imposed on Chinese exports did leave a mark on the Chinese economy," Mr. Witter said. Nevertheless, the company expects high single-digit growth opportunities in China if the U.S. and China resolve their dispute. So far, Volkswagen sales in China keep growing. The auto manufacturer delivered 3 million cars in the nine months ended Sept. 30 in China, up 5% from the prior-year period.

Hoping for an orderly Brexit. Despite turmoil in Britain, Volkswagen continues to work under the assumption of a "managed Brexit," Mr. Witter said. Future trade relations and foreign exchange rates are the biggest concerns for Volkswagen, he said. The company produces Bentley luxury cars in Britain and has built up some stocks and inventories. "We have taken meaningful measures," said Mr. Witter, adding: "There are certain scenarios that you cannot prepare for." The U.K. is Volkswagen's second-biggest market in Europe after Germany. Deliveries declined 5.6% in the nine months ended Sept. 30 compared with the prior-year period.

Managing volatility is key. Recent market turbulence is a concern for Volkswagen, Mr. Witter said. Volatility could affect whether the company decides to sell shares in its truck unit Traton AG through an initial public offering. "The overall market environment is pretty volatile, and so we are assessing the situation," he said.

Successful U.S. bond issuances mean Volkswagen is back. Volkswagen's recent return to the U.S. bond market after its diesel scandal is a sign of normalization. Before the emissions scandal that broke in 2015, Volkswagen used to sell bonds totaling EUR30 billion ($34 billion) to EUR40 billion annually, Mr. Witter said. The recent U.S. dollar and euro issuances totaling EUR12.5 billion helped reduce Volkswagen's reliance on short-term funds. "You should see these transactions as a rebalancing of the overall portfolio," he said.

Write to Nina Trentmann at Nina.Trentmann@wsj.com

(END) Dow Jones Newswires

December 13, 2018 14:45 ET (19:45 GMT)