Volkswagen Group's profits plummeted by 61% due to the double blow of tariffs and the Porsche crisis.

Volkswagen announced that its net profit for the first three quarters of 2025 was only 3.4 billion euros, a sharp decrease of 61% compared to the same period last year, mainly due to the imposition of import tariffs by the United States and the failure of its luxury brand Porsche's electrification strategy. This crisis has led to a shake-up in senior leadership and raised concerns about the future direction of Europe's largest car company. Data shows that Volkswagen has incurred tariffs of up to 2.1 billion euros due to the trade policies of the Trump administration, and the full-year loss could expand to 5 billion euros. The company's chief financial officer, Antitz, has warned that the company must accelerate cost-cutting in all departments. Meanwhile, Porsche has incurred a write-down of 4.7 billion euros due to the decision to not launch multiple pure electric car models, leading to an operating loss of 966 million euros in the third quarter, its first since going public. This has also dragged down the holding company, Porsche SE, whose adjusted profit after tax for the first nine months has decreased by 36% to 1.6 billion euros. As a result, the Porsche supervisory board has requested Oliver Blume to step down as CEO of Porsche, retaining only the position of Volkswagen Group CEO, and has appointed former McLaren CEO Michael Leiters to take over from January 2026. Volkswagen Group still maintains its revenue forecast of approximately 325 billion euros for the full year, but expects its operating profit margin to decrease sharply from 9% last year to 2-3%. The company is currently implementing a plan to reduce its workforce by 35,000 by 2030, with about 20,000 employees already voluntarily resigning. Cost consolidation, strategic adjustments, and restoring profitability have become the top priorities for this automotive giant in the face of high tariffs and the transition to electric vehicles.