German carmaker Volkswagen reported a net loss of €1.07 billion ($1.24 billion) for the third quarter on Thursday.
This is its first quarterly loss in five years.
Volkswagen’s earnings have been affected by multiple challenges including higher US tariffs, as well as a change of strategy at its luxury Porsche brand, which scrapped its previously announced goals on electric vehicle production.
What has VW said about the profit slump?
Finance chief Arno Antlitz said the result was “much weaker” than a year earlier, blaming “higher tariffs, adjusting the product strategy at Porsche and write-downs to Porsche’s value.”
Without those negative effects, Volkswagen’s operating margin would be 5.4%, Antlitz said. He added that it was “actually, a respectable figure in the current economic environment.”
Volkswagen, whose 10 brands range from Skoda and Seat to Audi, said US President Donald Trump’s tariff policy was costing it about €5 billion annually. Under the latest EU-US trade arrangement, car exports from Europe now face a 15% tariff — lower than the previous 27.5% but still far above pre-trade-war levels of 2.5%.
Porsche, once Volkswagen’s most profitable brand, has also become a source of strain amid sluggish demand for electric sports cars and growing competition in China.
In September, VW warned of an expected €5.1-billion-euro hit to its core profit for the 2025 financial year after Porsche slashed its medium-term targets. Porsche also announced it would continue producing petrol models longer than planned.
The VW group has since absorbed restructuring costs and written down the value of its stake in the Stuttgart-based sports car marque. It also faces higher costs for importing parts into the United States from outside North America, adding to the financial pressure.
For the first nine months of 2025, the VW group’s net profit shrank more than 60% to €3.4 billion from €8.8 billion last year.
Edited by: Darko Janjevic
