Volkswagen has announced a loss of $1.5bn during the first half of the year, attributing this primarily to tariffs imposed by the United States. The German car manufacturer has revised its profit margin forecast downward to 4-5% from the previous 5.5-6.5%, forecasting steady full-year sales compared to the prior year. CEO Oliver Blume stressed the urgency for enhanced cost-cutting measures in light of the ongoing tariff challenges. Volkswagen's situation is echoed by similar profit hits reported by other automakers, including General Motors and Stellantis, highlighting broader industry impacts from tariffs.
Volkswagen reported a $1.5bn loss in the first half of the year due to tariffs imposed by the United States, significantly revising its profit forecast.
The operating profit margin forecast was adjusted to 4-5% down from 5.5-6.5%, with full-year sales expected to remain unchanged from the previous year.
CEO Oliver Blume emphasized the need for accelerated cost-cutting efforts and stated, "We cannot assume that the tariff situation is only temporary."
Volkswagen joins Stellantis and General Motors in reporting revenue impacts from tariffs, with GM and Stellantis also reporting significant losses in recent months.
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