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.
Rescuers pulled two people from the rubble of a collapsed building under construction in the Philippines, raising the death toll to three. Search and ...
Thousands of visitors flocked to Hong Kong’s Cheung Chau island on Sunday for the annual Bun Festival, as crowds gathered to watch the famous “flo...
At least 28 people have been killed and two remain missing after a landslide hit an illegal gold mine in Angola’s Bengo province, authorities say....
The World Urban Forum 13 in Baku brought together global urban leaders to discuss how cities are adapting to climate pressures, digital transformation...
Start your day informed with the AnewZ Morning Brief. Here are the top stories for 25th May, covering the latest developments you need to know....
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.
The inaugural Enhanced Games began in Las Vegas on Sunday (24 May), launching one of the most controversial experiments in modern sport, in which athletes openly compete using performance-enhancing drugs banned under traditional anti-doping rules.
A "largely negotiated" memorandum of understanding on an Iran peace deal would reopen the Strait of Hormuz, U.S. President Donald Trump said on Saturday, though the Iranian Fars news agency disputed that claim.
Police fired tear gas and clashed with protesters in central Belgrade on Saturday, as tens of thousands gathered to demand early elections and an end to the more than decade-long rule of Serbia's President Aleksandar Vučić.
A peace agreement between Washington and Tehran is yet to materialise, with U.S. President Donald Trump saying that negotiations are incomplete and an Iranian Foreign Ministry Spokesman saying that a deal isn't imminent.
An explosion on a railway track in Pakistan's Quetta killed at least 24 people, news outlet Al Arabiya reported on Sunday, citing officials.
Kevin Warsh will be sworn in as chair of the U.S. Federal Reserve on Friday as policymakers consider higher interest rates to tackle inflation linked to the Trump administration’s Iran policy.
A government-mediated agreement has suspended an 18-day walkout by about 48,000 Samsung union members, easing fears of damage to South Korea's economy and global chip supply.
Asian stocks surged on Thursday as some vessels resumed passage through the Strait of Hormuz, while forecast-beating results at Nvidia and a suspended workers' strike at Samsung Electronics lifted shares of chipmakers.
Elon Musk’s SpaceX will have to improve its reliability before receiving approval for its target 10,000 launches annually within five years, Bryan Bedford, Head of the U.S. civil aviation agency, the Federal Aviation Administration (FAA), has said.
Demand for electric vehicles has surged across Europe as elevated fuel prices linked to the Iran conflict push consumers toward new and second-hand EVs, according to data shared with Reuters. It is providing a boost to an auto industry that has struggled with slower-than-expected adoption.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment