Volkswagen posts 29% drop in second-quarter profit as tariffs hit hard
On May 14, 2025, a worker performs a final check on the new Volkswagen ID.3 electric cars at the Volkswagen factory in Germany.
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Germany Volkswagen On Friday, he reduced full -year guidance and car giant wandered under the destructive influence of US tariffs, while the second quarter of the snow reported a sharp decrease.
Europe’s largest automobile manufacturer, from June to June, $ 3.83 billion ($ 4,49 billion) and decreased to 29% of 5.4 billion euros a year ago.
According to an agreement compiled by Factset, the analysts waited for the second quarter profit to come with an euros of 3.94 billion euros.
Volkswagen reported the second quarter sales revenue of 80.8 billion euros, and also 82.2 billion euros analyst expectations.
The results are coming while struggling to deal with a number of industrial challenges, including Europe’s automobile manufacturers, Chinese automobile brands and US President Donald Trump’s 25%import tariffs.
“Our half -year figures offer a opposite picture: on the one hand we achieved strong product success and made progress in reorganizing the company,” Volkswagen Chief Finance Officer Arno Antlitz said. He said.
“On the other hand, as a result of the activity, it fell from a third year due to higher sales of all lower margin electrical models. In addition, increasing US import tariffs and restructuring measures had a negative impact.” He said.
When we look forward, Volkswagen said that sales expect the full -year -old business return between 4 to 5%, from 5.5% to 6.5%.
Considering the high globalization of supply chains and heavy trust in production operations in North America, the automotive sector is widely vulnerable to US tariffs.
Trump recently threatened to increase EU automobile imports from 1 August to 30% and increased pressure on the 27 Ulus Trade block. The European Commission, which has the EU’s executive branch, has been thinking about its response since then.
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– Jenni Reid from CNBC contributed to this report.
