Overview

• Volkswagen reported a sharp 40% drop in Q1 2025 operating profit, falling from €4.6 billion to €2.8 billion year-over-year.
• The decline was driven by U.S. tariffs on auto imports, which heavily impacted vehicles shipped from Mexico and Europe to the U.S. market.
• One-off costs, including €600 million for EU emissions compliance and €200 million for restructuring its software unit, further weighed on profits.
• Despite a 3% increase in sales revenue to €78 billion, the results fell significantly short of market expectations of around €4 billion in profit.
• Volkswagen maintained its 2025 outlook but noted ongoing uncertainties around the full impact of U.S. tariffs and regulatory changes.