Volkswagen posts 29% drop in second-quarter profit as tariffs hit hard
The employee has a closing examination of the brand new Volkswagen ID. 3 electrical vehicles on the Volkswagen Manufacturing facility on Might 14, 2025 in Dresden, Germany.
Sean Gallup Getty Pictures Information | Gety footage
Germany Volkswagen On Friday, she decreased your entire yr’s directions and reported a pointy lower in revenue within the second quarter, because the automotive large moved to the subversive impact of American definitions.
The biggest automotive maker in Europe recorded 3.83 billion euros ($ 4.49 billion) for the three months to June, with 29 % from 5.4 billion euros a yr in the past.
Analysts anticipated the second quarter revenue to succeed in 3.94 billion euros, based on the compatibility of the details of consensus.
Volkswagen recorded gross sales income within the second quarter of 80.8 billion euros, and the expectations of analysts of 82.2 billion euros misplaced.
The outcomes come as automotive industries in Europe struggle To succeed in a collection of business challenges, together with robust competitors from the manufacturers of Chinese language vehicles and the US President Donald TrumpImporting tariff of 25 %.
“Our numbers are half a yr, a contradictory picture: on the one hand, we now have achieved robust success for the product and achieved progress in reorganizing the corporate,” stated Arno Antletis, the Volkswagen Monetary Director, in an announcement.
“However, the results of operation decreased by a 3rd yr on an annual basis-due to the excessive gross sales of the absolutely low margin fashions. As well as, the rise within the US import tariff and restructuring measures had a adverse impact,” he stated.
Wanting on the future, Volkswagen stated it expects its working return on your entire yr will vary from 4 % to five %, a lower from 5.5 % to six.5 % beforehand.
The auto sector is extensively weak to American definitions, particularly given the excessive globalization of provide chains and intense dependence on manufacturing operations all through North America.
Trump not too long ago threatened the European Union automotive import duties to 30 % from August 1, Pressure On the buying and selling bloc 27 international locations. Since then, the European Fee, the manager arm of the European Union, has been. Looking at its response.
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– Jenny Reed of CNBC contributed to this report.
2025-07-25 05:37:00
