On Thursday, weaker German car giant Volkswagen’ warned its future is at risk if more cost cuts are not made, after profits fell more than expected amid geopolitical tensions, trade tariffs and intense competition.
Net profit of the group from January to March %€1.56 billion in ’ya, down 28 percent, and revenues worse than analysts' estimates %2 declined to 75.7 billion Euro’.
VW chief financial officer Arno Antlitz, “, said that the cost reductions planned so far are not enough”. “We need to fundamentally change our business model and deliver structural, sustainable improvements in all areas and at all levels. If we fail to do so, we are jeopardizing our future. - ”
Antlitz said a multi-tiered cost reduction program could include reducing vehicle production costs without reducing quality, significantly reducing overhead and improving the efficiency of our “ factories and accelerating technology development and decision-making.
Car manufacturer already He plans to lay off 50,000 people.By 2030 Germanyat all its brands in ’.
With 10 brands ranging from Audi’ to SEAT and Škoda’, VW will have to adjust its capacity and “ will work to further optimize costs in our factories.
He warned that Chinese automakers not only competed on their own territory, but also gained market share in the European ’.
Automakers such as BYD have emerged as relentless competitors in the Volkswagen’in China’, traditionally a major source of profit for the German manufacturer, especially in the EV segment.
China's ’ sales are slowing
Antlitz also said that tariffs imposed by US President Donald Trump ’ a year ago cost the group an extra 4 billion euros per year.
Volkswagen in the first quarter compared to the previous year %It sold 2 million vehicles, down 7 percent. South America (+%3), Western Europe (+%1) and Central and Eastern Europe in ’ (+%7) growth, China (-) and North America in ’ (-%9) partially compensated for the declines.
General sales in 2026. %With a 0 %It will grow between 3 and the core profit margin will also %With a 4 %He estimates it'll be between 5.5.
Volkswagen said it was not included in the estimates because the possible effects of the war on the Middle East ’ could not be reliably assessed.
GermanyOne of ’'s most recognizable companies, Volkswagen’in's woes reflect a more general disturbance in Europe’'s largest economy, especially among traditional manufacturers.
The company's annual profit fell to its lowest level in almost a decade in 2025’te.
On Thursday, CEO Oliver Blume said VW’ should align its strategy with a new world of “, which is undergoing fundamental change.
Wars, geopolitical tensions, trade barriers, tighter regulations and intense competition are creating adverse winds, “ said.
Following the report, the share price of Avrupa’da rose slightly in the morning.
