US EditionVolkswagen’s Main Brand Barely Earned Income in First Quarter
- In early 2025, Volkswagen marked the production of its one-millionth EV by manufacturing a GTX version of the ID model at its Zwickau factory in Germany.
- This milestone followed Volkswagen doubling its electric vehicle sales in Europe during Q1 2025 amid increasing demand despite high production costs and margin pressures.
- The company reported a 40 percent drop in earnings before tax to $3.44 billion in Q1 2025, affected by lower EV profitability, CO₂ rules, diesel-related costs, and US tariffs.
- CFO Arno Antlitz stated, "Our cars are very well received," with EV order backlogs in Western Europe up 64 percent, yet EV margins remain below combustion models.
- Volkswagen aims to improve profitability with affordable electric models like the ID.2 launching in 2026 but must manage continuing financial headwinds this year.
19 Articles
19 Articles
Volkswagen, a recognized automotive giant, did not start on 2025 with the right foot. According to Reuters’ original report, the group reported a 46.3% drop in first-quarter operating profits for its main brand, which includes VW, due to carbon provisions in the EU and tariff adjustments in the US. This left its profits at €1.12 billion, compared to last year’s €2.08 billion. Impact of tariffs in the US. The challenging situation of the US marke…
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Experts had already guessed it, but in the end it got even more bitter than feared: For a VW subsidiary, it didn't go well in the first quarter.
Volkswagen's profit falls by 41 percent. In addition to special costs, the Chinese market is a problem. What strategy VW is pursuing now.
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