Volkswagen Group Reports 29% Drop in Operating Profit in First Half of 2025

Volkswagen Group has reported a 29% decline in operating profit for the first six months of 2025, largely due to the impact of US import tariffs and ongoing workforce restructuring. Operating profit fell to €3.83 billion, missing analyst expectations, while sales revenue also came in below forecasts at €80.8 billion.

US tariffs on imports cost Volkswagen €1.3 billion (£1.13 billion) in the second quarter alone. CEO Oliver Blume stated the company “cannot assume the tariff situation is temporary,” highlighting ongoing challenges for the group.

The operating profit of €3.83 billion in H1 2025 corresponds to an operating margin of 4.2%. Volkswagen now anticipates its full-year 2025 operating margin to be between 4% and 5%, revised down from earlier guidance of 5.5% to 6.5%, due to higher tariffs in the US and restructuring expenses.

While electric vehicle sales have increased across Europe, Volkswagen experienced declines in China and North America, the latter impacted by tariffs. Despite a sharp rise in order intake for all-electric vehicles, the group expects full-year EV sales to remain flat compared to 2024.