German automaker Volkswagen AG reported first quarter earnings on Wednesday, with its working revenue plummeting round 37% year-on-year to €2.9 billion, as the corporate continues to cope with the impression of US tariffs.
Gross sales income edged up 3% to €78bn within the first quarter of this yr, in comparison with the identical interval in 2024.
Round 2.1 million autos had been bought within the first three months of 2025, a rise of 1% from the primary quarter of 2024.
The worldwide share of battery electrical car (BEV) deliveries rose from 6% to 10% year-on-year.
In Western Europe, Volkswagen’s share of BEV deliveries jumped from 9% to 19%, with each fourth BEV registered within the first quarter coming from Volkswagen Group.
The worldwide automotive sector is considerably weak to the present US tariffs on automotive imports, particularly due to how globalised auto provide chains are. Because of this a number of automotive producers rely significantly on manufacturing services exterior of the US.
Though Trump altered the present 25% auto tariffs this week to make it less complicated for producers to keep away from excessive duties, companies have already been impacted. It might additionally take extra time for the total extent of this tariff discount to filter by way of the sector.
Arno Antlitz, the CFO and COO of Volkswagen AG, mentioned within the first-quarter earnings launch on the corporate’s web site: “As anticipated, the Volkswagen Group skilled a blended begin to the fiscal yr. Our vehicles are very nicely acquired. Order consumption in Western Europe elevated considerably and our order books are filling up quick.”
Antlitz identified that each fifth automotive bought in Western Europe is now totally electrical.
He added: “On the identical time, this market success of our electrical vehicles places stress on our outcome. An working margin of round 4 p.c clearly exhibits that there’s nonetheless a substantial quantity of labor forward of us.”
He additionally highlighted the significance of specializing in the levers throughout the firm’s management, towards a backdrop of unstable international financial situations. The agency should complement its vast product vary with a aggressive value base, with a view to increase probabilities of success in quickly altering market conditions, he mentioned.
Coming to the outlook for the yr forward, Volkswagen Group expects gross sales to exceed the earlier yr’s determine by as much as 5%.
The working return on gross sales is more likely to be between 5.5% and 6.5%, mentioned the agency, however this steering doesn’t embrace any impression from the present tariffs.
The automotive web money circulate for the yr is estimated to be anyplace between €2bn and €5bn, whereas web liquidity within the automotive division is more likely to be someplace between €34bn and €37bn.
The corporate mentioned within the earnings press launch: “Based mostly on the developments within the interval as much as April 28, 2025, the Volkswagen Group expects the working return on gross sales, automotive web money circulate and web liquidity to pattern in direction of the decrease finish of the respective ranges. It stays the group’s aim to proceed its sturdy financing and liquidity coverage.”