Overview

• Volkswagen’s operating profit for the first half fell 33% to €6.7 billion, and Q2 earnings declined by $1.84 billion year-on-year as a result of US import duties.
• The company trimmed its full-year operating return on sales forecast to 4–5% from an earlier 5.5–6.5% range in light of sustained tariff costs.
• EU and US negotiators are working toward a 15% vehicle tariff cap by August 1, with the EU ready to levy 30% retaliatory duties if no deal is reached.
• Volkswagen is lobbying for company-specific tariff carve-outs and proposes offsetting its $14 billion US investments against any remaining duties.
• Excluding import tariffs and restructuring charges, Volkswagen achieved a Q2 operating margin near 7%, at the upper end of its expectations.