Volkswagen reports Significant Profit Decline in First Half of 2025 Amid Restructuring and EV Sales Pressures
German automotive giant Volkswagen has announced a substantial drop in net profit for the first six months of 2025, marking the sixth consecutive quarter of decline for the group. The company’s financial results, published this Friday, reveal a 38.5% decrease in net profit, falling to 4.5 billion euros (4.2 billion francs) from 7.3 billion euros in the same period last year.While turnover experienced a more modest dip of 0.3%, reaching 158.4 billion euros (148 billion francs), the operating result saw a more dramatic contraction of 32.8%.
Volkswagen attributes this significant downturn to several key factors. The company is currently undergoing extensive restructuring efforts within its Audi and volkswagen brands, which have impacted its financial performance.Furthermore, its dedicated software division, CARIAD, incurred losses of 700 million euros (654 million francs). Arno antlitz, Volkswagen’s director, also pointed to the increased sales of lower-margin electric vehicle models as a contributing factor to the reduced profitability, as highlighted in a company press release.
