Volkswagen €1.3 billion loss tariffs
Volkswagen Group has reported a significant operating loss in the third quarter of 2025, driven largely by rising US import tariffs and restructuring costs at its premium-brand division, Porsche. The German automaker recorded an operating loss of approximately €1.3 billion in Q3, compared with a profit of around €2.8 billion in the same period a year ago.
Much of the loss stems from heavy charges related to Porsche’s strategic shift and writedowns, plus a tariff bill that could reach as much as €5 billion for the full year. Volkswagen warned that the US duties on vehicles and parts remain a substantial cost burden.
Despite this loss, Volkswagen said it still expects to hit its full-year margin target of 2-3 per cent, and revenue for the period held relatively steady. The company reported revenues of about €80.3 billion for Q3, up 2.3 per cent year-on-year.
Volkswagen’s CFO, Arno Antlitz, commented that the company will increasingly rely on its scale and internal synergies to offset the tariff impact. Volkswagen is also considering localising more production in the US, including a possible new plant for its Audi brand, in order to reduce exposure to import duties.
The troubles at Porsche also weighed heavily. The luxury brand incurred large write-downs tied to its slower-than-expected shift to electric models and continued reliance on combustion power, a shift Volkswagen says is necessary to protect margins in a highly competitive environment.
This situation highlights the broader risks automakers face amid trade tensions and the fast-evolving transition to electric vehicles. For Volkswagen, the combination of higher tariffs, restructuring costs, and semiconductor supply risks is creating a challenging operating environment.
