Volkswagen publishes 29 % in the second quarter profit with the arrival of definitions strongly star-news.press/wp

Germany Volkswagen On Friday, she reduced the entire year’s instructions and reported a sharp decrease in profit in the second quarter, as the car giant moved to the subversive effect of American definitions.

The largest car maker in Europe recorded 3.83 billion euros ($ 4.49 billion) for the three months to June, with 29 % from 5.4 billion euros a year ago.

Analysts expected the second quarter profit to reach 3.94 billion euros, according to the compatibility of the facts of consensus.

Volkswagen recorded sales revenue in the second quarter of 80.8 billion euros, and the expectations of analysts of 82.2 billion euros lost.

The results come at a time when car manufacturers in Europe are struggling to obtain a series of challenges in the industry, including strong competition from Chinese cars brands and the definitions of US President Donald Trump by 25 %.

“Our numbers are half a year, a contradictory image: on the one hand, we have achieved strong success for the product and achieved progress in reorganizing the company,” said Arno Antletis, the Volkswagen Financial Director, in a statement.

“On the other hand, the result of operation decreased by a third year on an annual basis-due to the high sales of the fully low margin models. In addition, the increase in the US import tariff and restructuring measures had a negative effect,” he said.

Looking at the future, Volkswagen said it expects its operating return on the entire year will range from 4 % to 5 %, a decrease from 5.5 % to 6.5 % previously.

The auto sector is widely vulnerable to American definitions, especially given the high globalization of supply chains and intense dependence on manufacturing operations throughout North America.

Trump recently threatened the European Union car import duties to 30 % from August 1, which increased the pressure on the trading bloc of 27 countries. Since then, the European Commission has been studying the executive arm of the European Union, its response.

This is urgent news. Please update for updates.

– Jenny Reed of CNBC contributed to this report.