Particle.news
Download on the App Store

Volkswagen Profit Slumps in Q3 as Porsche Charges and Tariffs Bite

Seat expects a tough near term as tariffs erode margins.

Overview

  • Group operating profit fell 58% year on year to €5.408 billion in the third quarter, and Volkswagen now guides to a 2%–3% margin for 2025.
  • Management kept delivery and revenue targets but made them conditional on stable semiconductor supply from Nexperia.
  • Volkswagen booked about €4.7 billion in charges tied to Porsche’s revised electrification plan, and it warns U.S. import tariffs could cost up to €5 billion next year; Oliver Blume will step down from his Porsche role by year-end.
  • Seat reported a €22 million operating loss in Q3 with a –0.6% margin despite a 32% revenue rise and 30% higher volumes, citing EU tariffs on the China-built Cupra Tavascan and an unfavorable sales mix while negotiating a solution with EU authorities.
  • Seat and Cupra’s year-to-date operating profit dropped to €16 million (–96%), Cupra sales rose sharply as Seat declined, and Skoda outperformed within the Core brands.