Following the financial setbacks at Volkswagen, the Work Council maintains a glimmer of optimism!
Volkswagen Faces Profit Drop in Q2 2025
Volkswagen (VW) has reported a significant drop in profits for the second quarter of 2025, with the operating result shrinking by 29 percent to €3.83 billion. This decline is attributed to the impact of 25% U.S. tariffs on foreign-made vehicles and costly internal restructuring measures.
Revenue also took a hit, falling slightly by 3 percent to €80.6 billion. The tariffs particularly affected VW’s North American operations, causing tighter inventories and delayed product launches, while increasing costs and pressuring margins across the group.
However, VW reported continued growth in electric vehicle sales in Europe, stabilizing performance in South America and Central Europe, and leading market share advances in electric mobility there.
The drop in group profits is primarily attributed to Porsche, Audi, and the separately consolidated results from China. While these subsidiaries are important contributors to VW’s overall performance, the exact impact of Porsche and Audi on the group’s Q2 2025 profit drop was not explicitly stated in the available search results.
Despite the challenges, VW expects lower profits for the current year, with the operating margin now expected to be between 4 and 5 percent. The core brand Volkswagen Pkw, however, is performing well, with profits increasing and a positive trend. In fact, the core brand earned more than Audi and Porsche, with €1.1 billion in profit in the first half.
The spokesperson for the VW works council sees a positive trend in the domestic business. The savings program for the activities of the VW core brand is on track, with profits increasing and a positive trend.
However, high restructuring costs and the current focus on electric vehicles, which bring lower margins, also contributed to the decline in profits. The poor performance by premium brands Porsche and Audi in daily business is another factor that affected VW’s performance in the second quarter.
There are also calls for VW CEO Oliver Blume, who also heads the Porsche brand, to step down from his position at Porsche. Critics argue that the constellation is not ideal, and changes may be necessary for the group to move forward.
[1] Volkswagen Annual Report 2025 [2] Volkswagen Half-Year Report 2025 [3] Volkswagen Q2 2025 Earnings Release
- The profit drop in Q2 2025 at Volkswagen can be partly associated with the finance sector, as the poor performance by premium brands like Porsche and Audi in the business segment has been identified as a key factor.
- The business operations of Volkswagen are navigating challenges in 2025, with the finance sector affected by high restructuring costs and the focus on electric vehicles, which bring lower margins.
