VW warns of profit hit due to China chip export ban
Volkswagen is warning that its profits could be in trouble, thanks to a shortage of semiconductors from China.
The issue started after Beijing banned chip exports from Nexperia, a company taken over by the Dutch government.
Even though VW has tried to cut costs and launch new models to make up for slower demand in China, it all comes down to whether they can keep getting enough chips.
VW's woes: From EV strategy u-turn to US trade tariffs
This chip crunch isn't just VW's problem—it's threatening production for carmakers across Europe.
VW managed to sell 6.6 million cars in the first nine months of 2025 (a slight bump up from last year), but it's still facing a €1.3 billion operating loss due to a U-turn on its electric vehicle strategy at its subsidiary Porsche.
To top it off, new US trade tariffs are adding another €5 billion headache for the company in 2025.