10:40 am, July 25, 2025
Volkswagen Group has issued profit warnings after a sharp decline in second-quarter net profit, led by the impact of US import tariffs, and a subsequent weak performance from premium brands Porsche and Audi.
The German manufacturer posted a net profit of €2.29 billion (£2.0n), down by around a third from a year earlier. Operating profit fell around 29 per cent to €3.83 billion (£.3.34bn), resulting in an operating margin of 4.7 per cent, in line with analyst expectations and described by Volkswagen as a ‘solid result’.
The company warned of lower full-year profitability, citing lower margins on electric cars and expected tariffs on imports to the United States as the biggest impacts.
Europe’s biggest carmaker expects an operating return on sales in the range of 4% to 5%, compared with a previously forecast 5.5-6.5% range, the company said in its half-year statements.
Car sales figures for June showed a broader slowdown in Europe’s car market, as well as an increased threat from Chinese makers.
Despite reassuring shareholders of its solid position, VW is continuing with a global restructure, which will see it cut more than 35,000 jobs by the end of the decade.
