Asger Risom
Volkswagen has reported a sharp drop in profits after US tariffs cost the company €1.3 billion in the first half of 2025, forcing the automaker to cut its forecasts for the rest of the year.
Volkswagen has reported a sharp drop in profits after US tariffs cost the company €1.3 billion in the first half of 2025, forcing the automaker to cut its forecasts for the rest of the year.
Tariffs Deal Heavy Blow to Volkswagen
US trade policies under President Trump have forced Volkswagen to pay higher import taxes, severely impacting its financial results for the first six months of the year.
€1.3 Billion Impact on Results
Volkswagen confirmed that tariffs and component taxes have cost the group €1.3 billion, slashing profits by more than a third compared to the same period last year.
Net Profit Falls Sharply
The German automaker’s net profit dropped to €4.01 billion in the first half of 2025, a 36.6% decrease from the previous year.
Operating Profit Takes a Hit
Volkswagen’s operating profit fell 32.8% to €6.7 billion, cutting its operating margin to 4.2% from 6.3% a year earlier.
Deliveries Hold Steady Despite Challenges
Despite the financial losses, Volkswagen delivered 4.4 million vehicles in the first half of 2025, up 1.3% year-on-year, with strong electric vehicle sales in Europe.
CEO Oliver Blume Addresses Struggles
CEO Oliver Blume acknowledged the “extremely challenging environment” and highlighted progress in design, technology, and software despite the company’s financial setbacks.
Forecasts for 2025 Revised Down
Volkswagen has lowered its growth outlook, now expecting revenues to remain flat compared to 2024 rather than achieving the previously forecast 5% increase.
Restructuring Adds to Costs
Audi, Porsche, and VW’s own brand are undergoing restructuring, contributing an additional €700 million in provisions and further pressuring profitability.
Outlook for the Rest of the Year
Volkswagen aims to stabilise sales and continue its EV push in Europe, where it holds a 28% market share, but warns that tariffs and competition will remain key challenges.
