- VW slashes 2025 profit forecasts after losing $1.5B to tariffs
Volkswagen just slashed its 2025 profit and sales forecasts after losing $1.5 billion to new US import tariffs.
The company's Q2 profits dropped 29%, squeezed by these tariffs, expensive restructuring, and more sales of lower-margin electric vehicles.
US deliveries fell nearly 10%
VW now expects its full-year profit margin to land between 4% and 5%, down from the earlier hope of up to 6.5%.
Sales growth is expected to be flat instead of rising by up to 5%.
US deliveries fell nearly 10%, hitting Porsche and Audi hardest since they rely on exports and don't have factories in the States.
VW insists it will maintain strong position in global EV market
CEO Oliver Blume says it's time for faster cost-cutting as tariff pressure grows.
On top of that, VW faces tough competition from cheaper Chinese EVs and stricter European rules pushing everyone toward electric cars faster.
Still, the company insists it's sticking with its big goal: maintaining a strong position in the global EV market.