Auto giant Volkswagen’s profit fell by half in 2025, reaching 6.9 billion euros, the lowest figure since the Dieselgate scandal in 2016.
In a statement, Volkswagen attributes the drop in profit to American tariffs and unforeseen restructuring costs.
In the information released this Tuesday, the German group also announced that it will cut 50,000 jobs in Germany by 2030.
Volkswagen, which also has other brands such as Audi, Skoda and the Spanish Seat, reported that revenue in 2025 was stable, at 321,913 million euros (-0.8% compared to the previous year), as were sales, which reached 9,022 million vehicles (-0.2%).
Operating profit fell by 53.5% to €8,868 million, reflecting an operating profitability of 2.8% (5.9% in the previous year), due to the cost of US tariffs and the change in Porsche’s product strategy.
Spanish brands Seat and Cupra saw their operating profit fall to one million euros in 2025, compared to 633 million euros in 2024, a drop of 99.8%, due to tariffs on the Cupra Tavascan, produced in China, and rising production costs despite growing turnover.
Despite this drop in profit, the Volkswagen group reported that Seat and Cupra revenues improved to 15.272 million euros (+5.1% compared to 2024) in a “challenging market environment”.
Executive Chairman-designate, Oliver Blume, assured that the Volkswagen group’s new beginning is already underway, keeping the company well on its way, “despite increasing global headwinds.”
Volkswagen (VW) chief financial officer Arno Antlitz confirmed that 2025 was characterized by “geopolitical tensions, disputes and intense competitive pressure”.
VW’s management and supervisory board propose a dividend of 5.26 euros for preferred shares and 5.20 euros for ordinary shares, 17% less than the dividend for the year 2024.
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