Tag is: the Volkswagen Group

Volkswagen’ profit plummets as automaker signals more cost cuts

by the Logistics TransportIn the the General Assembly

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.

Volkswagen Group sees decline in performance as U.S. tariffs pose risk

by the Logistics TransportIn the the General Assembly

German automaker Volkswagen AG announced its first-quarter earnings on Wednesday; operating profit is approximated annually as the company continues to grapple with the impact of U.S. tariffs declined to 2.9 billion Euro’.

Sales revenue in the first quarter of this year compared to the same period in 2024 %It increased by 3 to 78 billion Euro’.

2025In the first three months of ’, 2024According to the first quarter of ’ %Approximately 2.1 million vehicles were sold with an increase of 1 million.

Global share of battery electric vehicle (BEV) deliveries on an annual basis %the 6’ Raised to ’a.

Western Europe’'s share of Volkswagen’in BEV deliveries %the 9’ He ascended to ’; One out of every four BEV’s recorded in the first quarter came from the Volkswagen Group’.

The car industry worldwide is significantly vulnerable to current tariffs on US ’'s car imports, especially due to the globalization of car supply chains. This means that many automakers depend significantly on production facilities outside the U.S.

Although Trump is present this week to make it easier for manufacturers to avoid high tariffs %Although 25’ cars have changed their tariffs, companies are already affected. In addition, it may take more time for the full size of this tariff discount to be reflected in the sector.

Volkswagen AG’nin CFO’su and COO’su Arno Antlitz said in the first-quarter earnings statement posted on the company's website: “As expected, the Volkswagen Group made a mixed start to the financial year ​​. Our cars are very well received. Western EuropeOrder intake has increased significantly in ’, and our order books are filling up quickly.”

Antlitz pointed out that one out of every five cars sold in the Western European ’ is now fully electric.

He added: At the same time, the market success of our electric cars puts pressure on our results. An operating margin of around 4% makes it clear that we still have considerable business ahead of us.’

He also stressed the importance of focusing on leverages under the company's control in the face of volatile global economic conditions. He said that in order to increase the chances of success in rapidly changing market conditions, the firm needs to complement its wide range of products with a competitive cost base.

When it comes to next year's outlook, the Volkswagen Group is looking at the previous year's figure of sales. %He expects it to exceed 5’.

The firm is likely to reap the return on activity from sales. %From 5.5 to %He said it would be between 6.5, but this guide does not include any influence from the current tariffs.

This year's automotive net cash flow is estimated at between €2 billion and €5 billion, while the automotive sector's net liquidity is expected to be between €34 billion and €37 billion.

The company said in its earnings press release: “28 April 2025Based on developments in the period up to ’, the Volkswagen Group expects operating sales return, automotive net cash flow and net liquidity to trend towards the lower end of the respective ranges. It remains the group's goal to maintain a strong financing and liquidity policy.”