VW's profit set to plummet by nearly half by 2025 - Volkswagen's 2025 Slump: Profits Halved as Global Sales Dip and Tariffs Bite

Volkswagen Group faced a difficult year in 2025, with global deliveries falling slightly and profits dropping sharply. The company shipped fewer than 9 million vehicles worldwide, marking a 0.5% decline from the previous year. Financial pressures, including U.S. tariffs and losses at Porsche, added to the challenges.

The automaker delivered 8.98 million vehicles in 2025, down from 2024 figures. Sales in China dropped by 6%, while North America saw an even steeper decline of 12%. Europe provided some relief with a 5% increase, and South America grew by 10%, but these gains were not enough to balance the losses in larger markets.

Revenue also slipped by 0.8%, falling to just under €322 billion. Net profit took a far bigger hit, plummeting from €12.4 billion in 2024 to €6.9 billion in 2025. The third quarter proved particularly tough, with losses exceeding €1 billion—largely due to financial struggles at Porsche.

A key factor in Porsche's troubles was Volkswagen's decision to extend production of internal combustion engines. This strategic shift led to unexpected costs, placing further strain on the group's finances. Additional pressure came from U.S. tariffs, which squeezed margins across the business.

Volkswagen Group ended 2025 with weaker sales, lower revenue, and a halved net profit. The company's performance reflected regional disparities, with growth in Europe and South America failing to compensate for declines in China and North America. Financial setbacks at Porsche and external pressures like tariffs left the group in a more vulnerable position.