economy
March 10, 2026
Volkswagen flags a tough year ahead as 2025 profit halves on tariffs, China competition
Volkswagen reported a more than 50% drop in annual operating profit, citing the impact of U.S. tariffs, currency effects and a strategic shift at Porsche.
TL;DR
- Volkswagen's 2025 operating profit fell 53% to 8.9 billion euros.
- Reasons cited include U.S. tariffs, currency effects, and a strategic shift at Porsche.
- Full-year revenue remained steady at nearly 322 billion euros.
- The company expects revenue growth between 0% and 3% in 2026.
- Anticipated operating margin for 2026 is 4% to 5.5%, down from 5.9% in 2025.
- Volkswagen increased its market share in Europe, with EV market share exceeding combustion engine segment.
- No major supply constraints were reported due to the Middle East crisis.
- Shares rose 4% despite being down over 12% year-to-date.
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