Volkswagen lowers 2025 profit outlook amid U.S. tariffs impact
Volkswagen (VOWG.DE), Europe’s largest automaker, on Friday revised down its 2025 earnings forecast after U.S. tariffs weighed heavily on its second-quarter results.
The company now expects an operating return on sales of 4-5%, down from the previously projected 5.5-6.5% range. Full-year sales are forecasted to remain flat compared to 2024, reversing earlier predictions of up to 5% growth, News.Az reports, citing Reuters.
Volkswagen reported an operating profit of €3.8 billion ($4.46 billion) for the quarter ending June 30 — a 29% decline year-on-year. The drop reflects the combined effects of U.S. tariffs, restructuring costs, and increased sales of lower-margin electric vehicles.
The company and other European automakers are lobbying trade officials for a resolution to replace the 25% U.S. tariff on European cars, imposed since April, which has contributed to a broader slowdown in Europe’s struggling automotive sector.
Volkswagen is currently undertaking a major overhaul, including plans to cut more than 35,000 jobs by 2030, as it adapts to shifting market dynamics.
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