Volkswagen Group profits take big hit on Porsche shift

"2025 was punctuated by geopolitical tensions, tariffs and highly intense competition. The VW Group is planning 50,000 job cuts across its various brands by 2030. It is struggling with falling demand and rapidly improving homemade competition in China, as well as new tariffs in the US, by far its two biggest export markets."

"Like the rest of the German car industry, the VW Group is also struggling with managing and judging the pace of the shift towards electric motoring. Targets and incentives often vascillate and vary by region and public demand remains lower than many politicians and industry leaders had hoped."

"Porsche's net profits all but wiped out. The company logged a net profit of just 90 million, compared to 5.3 billion in 2024. The reasons for the reduction are a fundamentally changed market environment in China, the US tariffs, the slower rise of electromobi"

Volkswagen reported a significant 44% decline in net profits for 2025, dropping to 6.9 billion from 12.4 billion in 2024, representing the company's worst annual performance since the 2016 Dieselgate scandal. The decline stems from multiple pressures including geopolitical tensions, tariffs, and intense competition, particularly in China and the US—VW's two largest export markets. The company plans 50,000 job cuts by 2030 to address falling demand and rising competition from Chinese manufacturers. Additionally, VW struggles with managing the electric vehicle transition, as public demand remains lower than anticipated and regional incentives fluctuate. Porsche, VW's performance brand, was particularly hard hit, with profits nearly eliminated at 90 million compared to 5.3 billion in 2024, due to changed market conditions in China, US tariffs, and slower electric vehicle adoption.

Read at www.dw.com