Volkswagen profits stumble as definitions weigh on the auto industry Auto industry news star-news.press/wp

Carmaker joins Stellantis and GM in reporting their profits, as the definitions increase the costs of industry.

Volkswagen reported 1.5 billion dollars in the first half of the year due to the definitions imposed by US President Donald Trump.

The German auto industry company mentioned great success, as the company reviewed its sales expectations and all of them for profit.

Volkswagen, the largest car company in Europe, expects that this year’s operating profit margin will range from 4 percent to 5 percent, compared to previous expectations of 5.5 percent to 6.5 percent. The sales of the entire year, which witnessed earlier, were expected to be up to 5 percent, in the previous year.

Investors significantly expected to reduce instructions after the company was affected by assessing the damage caused by the definitions in the previous quarter, and it seems calmed down that the luxury brands of the group Audi will recover next year after heavy losses in the second quarter.

CEO Oliver Bloom told investors that the company should accelerate its efforts to reduce costs in response to definitions.

“We need to turn our costs into a high gear and speed up execution. After all, we cannot assume that the tariff situation is only temporary,” Blum said.

Global car manufacturers reserve billions of dollars from losses, some of which issued profit warnings due to American definitions. The European industry also faces a strict competition from China and local regulations aimed at speeding up the transmission of the electric car.

Tariff

Volkswagen is the third of the automotive company this week to achieve its profits due to the customs tariff. Michigan -based GM reported that the customs tariff cost $ 1.1 billion in the second quarter. Stelantis, brand maker including Jeep and FIAT, recorded a $ 2.7 billion losses for the first six of 2025.

VW and its competitors are pressing European trade negotiators to conclude a 25 percent American tariff deal that they have faced since April.

European Union diplomats indicated that the bloc can move towards a wide tariff of 15 percent, as it seeks to avoid a 30 percent tax from August 1. A deal between the United States and Japan concluded hopes for a similar agreement for Europe, which attributed the shares of auto manufacturers.

The Volkswagen’s Volkswagen profit margin said almost in the middle of his guidance through a deal similar to Japan, which was a 15 percent tariff.

He warned, however, that the hour was knocking on finding a deal. He said: “We are already in July, so whenever we go to the second half of the year, the more we tend to the lower party of guidance.”

Antlitz refused to comment on the increase in prices when pressed by investors on how the company plans to protect its margins from customs tariffs.

Volkswagen recorded a 4.4 billion dollars (3.8 billion euros) profit in the quarter ending on June 30, a decrease of 29 percent from the previous year. He cited definitions and restructuring costs for decline, as well as high -sorting sidelines sales.

While Volkswagen managed to enhance the world level delivery by 1.5 percent in the first six months of 2025, the group witnessed a decrease of approximately 10 percent in the United States.

North America’s sales revenues in 18.5 percent of the global car maker sales in the first half.

The auto sales data for the month of June highlighted a wider slowdown in the stalled auto sector in Europe – Volkswagen showed arrears as the company is subject to a comprehensive repair to reduce more than 35,000 jobs by the end of the contract.

Porsche and Audi are particularly exposed to American definitions, given that they do not have production there and are highly dependent on exports.

In the second quarter, the result of the operation of Porsche decreased by more than 90 percent to 154 million euros (181 million dollars) and AUDI by 64 percent to 550 million euros ($ 647 million).

Bloom said: “For both companies, Audi and Porsche, we expect to touch the bottom this year with a positive momentum from 2026 onwards,” Bloom said.

Despite the losses, VW shares are ascending. As of the back in New York (16:00 GMT), more than 3 percent have risen since the market has opened and more than 12 percent have risen over the past five days in trading.

The shares of other car makers who reported customs tariff injuries are heading up. Stelantis rises 3.9 percent for today. General Motors is even – only 0.2 percent increased.