Volkswagen profit halves as tariffs and China rivalry weigh

Volkswagen reported an operating profit of 8.9 billion euros for 2025 amid tariffs and China competition. The group expects a modest margin recovery in 2026.

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Volkswagen AG is facing a period of significant transition as it navigates a landscape marked by international trade tensions and a fierce battle for market share in China. The automotive group, headquartered in Germany, reported that its operating profit more than halved in 2025, falling to 8.9 billion euros and missing market expectations of 9.4 billion euros.

The iconic Volkswagen emblem is displayed during the company's yearly press event held in Wolfsburg, Germany. REUTERS/Liesa Johannssen

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