Volkswagen Group, Europe’s largest automaker, had its earnings fall dramatically in the first six months of 2025, with the operational result coming in at €6.7 billion, 33% lower than the previous year. Sales revenue was about in line with the previous year, totaling €158.4 billion. According to the company’s statement, the drop in profits was caused by higher US import taxes, €700 million in restructuring actions, and increasing sales of lower-margin all-electric vehicles.
Excluding these items, the operating margin in the second quarter is nearly 7%, representing the upper end of our expectations,” stated Arno Antlitz, CFO & COO of Volkswagen Group. Europe’s largest automaker is under pressure to slash expenses, with net cash flow of -€1.4 billion in the first six months of 2025. Sales in the United States fell by 16% as a result of rising tariffs, but a 19% gain in South America, strong statistics in Western Europe (+2%), and Central and Eastern Europe (+5%) made up for it.
The European Automobile Manufacturers’ Association (ACEA) reported that new automobile sales in the EU fell 1.9% year on year in the first half of 2025. Volkswagen’s overall sales in the bloc increased by 2.3% during this period, with Volkswagen, Skoda, and Cupra models driving the growth. In Europe, they increased our leading role in electric mobility, with a market share of 28% and order books continue well filled,” stated Oliver Blume, the company’s CEO.
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