Volkswagen cut its 2025 forecast after U.S. tariffs slashed €1.3 billion from profits, but strong EV demand and European sales offer signs of recovery.
Volkswagen Group has lowered its financial guidance for 2025 after U.S. import tariffs led to a €1.3 billion decline in income during the first half of the year. The carmaker reported an operating result of €6.7 billion for the first six months of 2025, marking a 33 percent drop compared to the same period last year.
Sales revenue remained relatively flat at €158.4 billion. The company said the drop in profit was due to the tariffs, €700 million in restructuring costs, and a higher volume of lower-margin electric vehicle sales.
CFO and COO Arno Antlitz stated that, when excluding these factors, the second-quarter operating margin was close to 7 percent, which he described as the upper end of internal expectations.
Volkswagen is also facing pressure to reduce costs after reporting a negative net cash flow of €1.4 billion during the same period. Despite the financial strain, Volkswagen’s shares rose more than 3 percent by midday Friday in European trading.
While U.S. sales fell by 16 percent due to tariffs, a 19 percent increase in South America and steady growth across Western and Eastern Europe helped offset the decline. In the European Union, where new car sales dropped by 1.9 percent overall in the first half of 2025, Volkswagen’s sales rose by 2.3 percent, driven by strong demand for Volkswagen, Skoda, and Cupra models.
The automaker also reported a 62 percent increase in electric vehicle orders. CEO Oliver Blume said the company holds a 28 percent market share in Europe’s EV segment and noted that order books remain strong.
A new London exhibition resurrects Pompeii with virtual volcanoes, 3D replicas of plaster casts, and a metaverse tour that places visitors inside the ...
The Azerbaijan embassy in Kyiv was damaged by debris from an Iskander missile during Russia’s overnight attack, which killed four people and injured...
China’s Communist Party newspaper has accused Japan of attempting to revive wartime militarism after Prime Minister Sanae Takaichi suggested a Chine...
The Palestinian group Hamas returned the remains of another Israeli hostage on Thursday evening under a Gaza ceasefire agreement, Israeli authorities ...
Start your day informed with AnewZ Morning Brief: here are the top news stories for the 14th of November, covering the latest developments you need to...
Volkswagen’s Brazil unit has been ordered to pay 165 million reais ($30.44 million) in damages for subjecting workers to slavery-like conditions on a farm during the 1970s and 1980s, labour prosecutors said on Friday.
Volkswagen cut its 2025 forecast after U.S. tariffs slashed €1.3 billion from profits, but strong EV demand and European sales offer signs of recovery.
In a stern warning to the automaker, the Indian government told a Mumbai court that quashing Volkswagen's demand to cancel a $1.4 billion tax bill would have "catastrophic consequences" and could encourage companies to withhold information and delay inquiries.
Volkswagen is set to recall 60,490 vehicles in the United States after the U.S. National Highway Traffic Safety Administration (NHTSA) identified a potential safety issue. The recall, which affects certain models, is due to a failure to display the gear position.
Two earthquakes centered in Cyprus on Wednesday were felt across northern and central regions of Israel, raising concerns among residents in both countries. The first tremor occurred at 11:31 a.m., with the epicenter near Paphos, Cyprus, at a depth of 21 kilometers.
Russia’s Foreign Minister Sergei Lavrov has urged the U.S. to avoid actions that could intensify the war in Ukraine, citing President Donald Trump’s past support for dialogue.
MrBeast, the world’s most popular YouTuber, has officially launched his first theme park, Beast Land, in Riyadh, Saudi Arabia.
Iran is facing its worst water crisis in decades, with officials warning that Tehran, home to over 10 million people, could become uninhabitable if the ongoing drought persists.
Audi has unveiled the car that marks its first major step into Formula One. It presented the 2026 challenger at a launch event in Munich attended by drivers, team leaders and senior company executives.
Wall Street closed sharply lower on Thursday, dragged down by steep losses in Nvidia, Tesla, and other artificial-intelligence heavyweights, as investors dialed back expectations for further Federal Reserve interest-rate cuts amid renewed inflation concerns and mixed signals from policymakers.
Russia’s budget deficit reached 4.2 trillion rubles (around $51.9 billion) in the first ten months of 2025, driven by rising government spending, according to data from the Finance Ministry released on Tuesday.
Wall Street climbed sharply on Monday, with Nvidia up 5.8% and Palantir 8.8%, as artificial intelligence (AI) stocks rebound and progress in Congress raises hopes of ending the U.S. government shutdown.
Visa and Mastercard announce a $38 billion settlement with merchants over high swipe fees, including fee reductions, surcharges options, and eight-year caps on standard consumer cards, resolving a 20-year antitrust battle.
Despite promises of recovery from the new government, Germany’s economy continues to stagnate, with no signs of renewed momentum. According to the latest report from the German Chamber of Industry and Commerce (DIHK), the country still lacks the drive needed for a genuine economic rebound.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment