The Volkswagen Group began the new year with a significant decline in profits. According to preliminary figures, the automaker’s operating profit fell to 2.8 billion € in the first quarter, compared to 4.6 billion € in the same period last year. Expectations were for profits to average around 4 billion €.
Volkswagen’s operating return on sales also fell significantly from the previous year’s figure of 6%, reaching around 3.6% at the start of the year. Sales rose around 3% to 78 billion €, driven in part by increased sales of electric models.
Volkswagen had previously announced its first-quarter sales figures: the group began 2025 with a 1.4% increase compared to the same quarter last year. The Volkswagen Group’s brands, led by Volkswagen, Škoda, and SEAT/Cupra, in particular, saw sales increases.
The group attributes the decline in profits primarily to stricter EU carbon emissions regulations, as well as the German group’s high operating and development costs.
US President Donald Trump’s announcement of tariffs on car imports sparked a global crisis, prompting a reaction from some companies.
These tariffs will impact exports to the United States, a move that Volkswagen Group has taken, halting its car exports to the US while awaiting decisions from the US President and the European Union.
Despite the German giant’s weak start, Volkswagen remains committed to its 2025 forecast, announcing that it intends to achieve an operating return of between 5.5% and 6% in 2025.
