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Volkswagen Reports 41% Profit Decline in Q1 2025 Despite Revenue Growth

The automaker cites restructuring costs, U.S. tariffs, and investment impairments but maintains its full-year financial targets.

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Overview

  • Volkswagen's Q1 2025 net profit fell 41% year-over-year to €2.186 billion, driven by restructuring costs and external pressures.
  • Revenue increased by 2.8% to €77.558 billion, with vehicle deliveries rising 0.9% to over 2.1 million units globally.
  • The company incurred €400 million in restructuring charges related to Cariad and Audi, alongside a €100 million impairment from Northvolt's bankruptcy.
  • Regional sales performance varied, with growth in Europe (+4%) and South America (+17%) offset by declines in North America (-2%) and China (-6%).
  • Electric vehicle demand surged 64%, now comprising over 20% of total orders, supporting Volkswagen's optimistic 2025 revenue and margin forecasts.