Overview

• 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.