German carmaker Volkswagen on Wednesday reported a steep drop in first-quarter profits, citing heavy one-off charges and weaker performance in China, reported dpa.
Europe's largest automaker posted a year-on-year profit decline of nearly 41% to €2.19 billion for the first three months of 2025.
While group revenue edged up nearly 3% to €77.6 billion, several headwinds weighed on the bottom line.
In addition to previously flagged special charges in the billions, Volkswagen earned significantly less from its joint ventures in China, a key market. Losses also deepened in its battery division.
Special costs totalling around €1.1 billion – including CO2 provisions in Europe, the continued restructuring of the Cariad software unit and additional reserves for the long-running diesel emissions scandal – weighed heavily on the balance sheet, pushing operating profit down by about 37% to €2.9 billion.
Volkswagen reaffirmed its outlook for the year, though the forecast does not yet account for any potential impact from new US trade tariffs under President Donald Trump's administration.
"As expected, the Volkswagen Group experienced a mixed start to the fiscal year," said chief financial officer Arno Antlitz in a statement.
"Our cars are very well received. Order intake in Western Europe increased significantly and our order books are filling up fast," Antlitz said, adding that sales of electric vehicles also saw a strong increase in the region.
"Given the current volatile global economic situation, it is even more important to focus on the levers within our control," he said. "This means complementing our great product range with a competitive cost base – so we can ensure to succeed also in rapidly changing global markets."
Source: www.dailyfinland.fi
