Volkswagen starts fiscal year 2025 with a profit decline. As the company announced on Wednesday, the consolidated net profit after taxes declined by 40.6 percent to 2.186 billion euros in the first quarter compared to the previous year. The company is still sticking to its forecast for the entire year. The expectation is that the consolidated revenue will exceed the previous year’s figures by up to five percent. The consolidated operating margin is expected to be between 5.5 and 6.5 percent. However, the impact of the recently announced tariffs has not yet been taken into account. “As expected, the Volkswagen Group started the fiscal year with mixed results” said CFO and COO Arno Antlitz. The order intake in Western Europe has risen significantly and the order books are filling up quickly. Moreover, every fifth car sold in Western Europe is now fully electric. “At the same time, the success of our electric cars on the market has weighed on the result.” An operating margin of around four percent clearly shows that there is still a lot of work ahead of the company. “Just because the global economic conditions are currently so uncertain, we have to concentrate on the things we can influence ourselves” said Antlitz. We must ensure a “competitive cost structure” in order to “remain successful in a rapidly changing world.
Volkswagen’s Profit Plummets as Electric Cars Drag Down Results
