Volkswagen Faces Profit Drop and Challenges in EV Transition

The German automaker reports a 30.6% profit decline in 2024, citing high costs, competition from Chinese rivals, and global trade uncertainties.

Volkswagen's 2024 net profit fell to €12.4 billion, a 30.6% drop from the previous year, despite a slight increase in overall sales to €324.7 billion.
The company attributed the decline to rising fixed costs, €2.6 billion in restructuring expenses, and challenges in its transition to electric vehicles.
Deliveries to China, Volkswagen's largest market, fell by nearly 10%, contributing to a 3.5% global drop in unit sales, with around nine million vehicles sold in 2024.
Volkswagen projects a 2025 operating margin of 5.5%-6.5%, slightly up from 5.9% in 2024, but warns of continued high costs and potential trade tensions, including U.S. tariff threats.
The automaker plans to cut 35,000 jobs in Germany by 2030 while maintaining domestic factory operations, reflecting broader cost-cutting measures to improve profitability.