Overview

• Volkswagen's 2024 net profit dropped by nearly 31% to €12.4 billion, with its operational profit margin falling to 5.9%.
• Porsche saw a 30% decrease in net profit, largely due to declining sales in China and high costs for model updates and electric vehicle investments.
• Both companies are revising their electric vehicle strategies, acknowledging slower-than-expected adoption and extending combustion engine production into the 2030s.
• Volkswagen plans to cut 35,000 jobs in Germany by 2030 as part of a €1 billion cost-saving initiative, while Porsche is considering additional layoffs in Stuttgart and Leipzig.
• Geopolitical risks, including potential US tariffs and competition from Chinese automakers, add further uncertainty to recovery efforts.