German Volkswagen's profit fell sharply by 44%

Volkswagen's after-tax profit in 2025 decreased by about 44% compared to the previous year. In addition to continued poor performance in China, U.S. tariffs also brought an additional burden of several billion euros. Comprehensive report by DeCai

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Volkswagen's after-tax profit in 2025 decreased by about 44% compared to the previous year. One of the reasons for the decline in performance came from its Porsche division: strategic adjustments led to increased costs, and the company plans to keep gasoline-powered models in its product line for a longer period.

In addition to continued poor performance in China, U.S. tariffs also brought an additional burden of several billion euros. Volkswagen only has one factory in Tennessee, USA, and other brands under the group are basically produced outside the United States, so the expected increase in tariffs and declining sales will cost the group up to 5 billion euros annually. In the third quarter of 2025, the Volkswagen Group recorded its first quarterly loss since 2020.

Regarding sales, the Volkswagen Group delivered approximately 8.98 million vehicles throughout 2025, slightly lower than the previous year. Although Volkswagen's market share in Europe increased, it was not enough to offset the losses in China and North America.

The Volkswagen Group will continue to implement cost-cutting measures. CEO Oliver Blume announced at an internal meeting that by 2023, the company will reduce 50,000 jobs.

Currently, the outlook for German industry is bleak. The Association of German Employers in the Metal and Electrical Industry expects that up to 150,000 jobs may be lost in the industry this year. The head of the association said, "We are in the process of deindustrialization, the prospects are very bleak, and the situation is indeed very serious." He called it the biggest crisis the industry has faced in German history.

Source: DW

Original: toutiao.com/article/1859290767004679/

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