Volkswagen Faces Profit Decline and Structural Challenges in 2025

The auto giant reports a 31% profit drop in 2024, with restructuring efforts and market struggles continuing to weigh heavily on its outlook.

Volkswagen's net profit for 2024 fell by 31%, dropping to €12.4 billion, driven by weak performance in China and high restructuring costs.
The company forecasts a challenging 2025, with operational profit margins expected to remain between 5.5% and 6.5%, similar to 2024's 5.9%.
China, once a key profit source, continues to underperform, with projected contributions for 2025 dropping to €500 million–€1 billion, compared to €1.7 billion in 2024.
Volkswagen's restructuring plan includes 35,000 job cuts in Germany by 2030 and adjustments to its electric vehicle strategy, including delayed investments in battery production.
EU regulatory changes easing CO₂ targets could provide relief, while geopolitical uncertainties, including potential US tariffs, remain significant risks.