Volkswagen bleeds €1b as Trump tariffs bite
Volkswagen posted its first quarterly loss in five years, reporting a €1.07 billion deficit from July through September. The drop marks the German automaker’s worst result since the second quarter of 2020, when pandemic shutdowns disrupted global operations. The company blamed rising U.S. tariffs and major setbacks at its Porsche unit.
Porsche’s shift to electric vehicles has stalled amid weak demand for battery-powered sports cars and fierce competition in China. Volkswagen took a €7.5 billion hit from higher tariffs, strategic changes at Porsche, and a write-down of Porsche’s value. The group also revised its annual profit outlook downward by €5.1 billion. U.S. tariffs on European car exports now stand at 15 percent, down from 27.5 percent but far above the prior 2.5 percent rate. Additional duties on imported auto parts add to the pressure. Finance chief Arno Antlitz called the underlying performance creditable but stressed that tariff costs cannot be ignored in assessing results.
