Revealed on
The largest European carmaker, Volkswagen Group, noticed its revenue decline sharply within the first six months of 2025; the working outcome got here in at €6.7bn, 33% decrease than a yr in the past. Gross sales income was roughly consistent with the earlier yr’s, at €158.4bn.
In accordance with the corporate’s assertion, the decline in earnings stemmed from elevated US import tariffs, restructuring measures that value €700 million and better gross sales of lower-margin all-electric fashions.
“Excluding these things, the working margin within the second quarter is at almost 7%, representing the higher finish of our expectations,” mentioned Arno Antlitz CFO & COO at Volkswagen Group.
Europe’s largest carmaker is beneath stress to chop prices as its internet money stream got here in at -€1.4bn for the primary six months of 2025.
Volkswagen’s share worth was up by greater than 3% round noon on Friday in Europe.
Gross sales stay steady, and EVs might convey reduction
Because of the elevated tariffs, gross sales within the US dropped sharply by 16%, however a 19% development in South America, strong figures in Western Europe (+2 %), in addition to Central and Jap Europe (+5 %) compensated for this.
General, new automobile gross sales within the EU dropped by 1.9% within the first half of 2025, year-on-year, based on the European Car Producers’ Affiliation (ACEA). Volkswagen’s total gross sales on this interval elevated by 2.3% within the bloc, led by Volkswagen, Skoda and Cupra fashions.
The automobile maker reported that order consumption for EVs elevated by 62%.
“In Europe, we expanded our main place in electrical mobility, with a market share of 28% and order books stay nicely stuffed,” mentioned the CEO, Oliver Blume.
What’s within the playing cards for Volkswagen?
The German carmaker up to date its monetary steerage for traders, including that it expects gross sales income to be consistent with the earlier yr’s determine, as a substitute of the +5% they beforehand projected.
The working return on gross sales is now anticipated to fall between 4% and 5%, down from 5.5% to six.5%. Probably the most pessimistic situation assumes that US tariffs of 27.5% will proceed to use within the second half of 2025, the optimistic forecasts confer with US tariffs diminished to 10%. “There may be excessive uncertainty about additional developments with regard to the tariffs, their affect and any reciprocal results,” learn the assertion.
The European Union and america are at present negotiating a commerce settlement to settle tariffs between the nations earlier than the 1 August deadline. Washington threatened the EU with 30% tariffs if there is no such thing as a deal by that day. In the meantime, the EU has additionally ready its personal countermeasures to deploy if the time comes.
“We’re relying on the European Fee and the US authorities to achieve a balanced consequence on the tariff subject,” mentioned the CEO of Volkswagen on a name on Friday.