Volkswagen Group has reported its second-quarter monetary outcomes, and it’s not excellent news. Working earnings from April to June had been down a whopping 29.4 p.c, with the automaker dealing with elevated strain from the US’s new tariffs. They’ve price the corporate €1.3 billion ($1.5 billion at right this moment’s alternate fee) by means of the primary six months of the 12 months.
The automotive big is dealing with a number of hurdles on high of the tariffs, together with elevated competitors in China and regulatory uncertainty because it makes an attempt to decrease prices. Porsche gross sales had been down 6.0 p.c by means of the primary half of 2025, whereas Audi gross sales decreased 5.9 p.c over the identical interval. Nevertheless, general gross sales for the group had been up 0.5 p.c, growing from 4.34 to 4.36 million autos.
Regardless of regular gross sales, VW Group is keen to implement its cost-cutting measures because it assumes the tariffs should not momentary. The automaker stated it expects the 27.5 p.c tariff to stay for the remainder of the 12 months, weighing down the corporate’s earnings. Arno Antlitz, VW Group CFO and COO, stated the tariffs and restructuring prices have had a “damaging impression.”
US President Donald Trump has threatened to extend tariffs on Europe to 30 p.c, however the automaker is hopeful the European Union and the US will attain a deal that would decrease them to 10 to fifteen p.c. Trump lately struck a take care of Japan to scale back the proposed tariff from 25 to fifteen p.c, so a decrease fee for Europe is feasible.
Till then, although, VW Group and different automakers are revealing simply how a lot the tariffs are costing them. Common Motors stated the additional duties have price it $1.1billion, whereas Stellantis reported they’ve price the corporate $300 million.
