Overview

• Volkswagen forecasts a 2025 operating profit margin of 5.5% to 6.5%, slightly up from 5.9% in 2024, with sales expected to grow by up to 5%.
• The company’s 2024 net profit fell 30.6% to €12.4 billion, attributed to high production costs, restructuring expenses, and declining sales in China.
• Volkswagen is grappling with fierce competition from Chinese electric vehicle manufacturers and higher costs in its transition to electric mobility.
• Potential U.S. tariffs proposed by President Donald Trump, targeting European auto imports, could significantly impact Volkswagen's operations, particularly for its Audi and Porsche brands.
• The automaker continues cost-cutting efforts, including job reductions and efficiency measures, while facing criticism for its high labor costs and complex operations in Germany.