Porsche strategy change hit Volkswagen AG's profits
The profit of Volkswagen AG, Europe’s largest carmaker, almost halved last year due to costs linked to a strategy shift in its sports car division and the impact of U.S. tariffs, according to DPA.
Net profit after taxes fell by about 44% last year to €6.9 billion ($8 billion), down from €12.4 billion in 2024, while revenue declined by 0.8% to approximately €322 billion, the German group announced on Tuesday, CE Report quotes AGERPRES.
Performance improved toward the end of the year compared with the first nine months of 2025. In the third quarter, the group reported losses of more than €1 billion.
Volkswagen changed the strategy of its sports car division Porsche, extending the lifespan of combustion-engine models. The costs related to this shift negatively affected the parent company’s results. In addition, U.S. tariffs imposed by Donald Trump generated additional expenses.
Global vehicle deliveries also declined by 0.5% last year to 8.98 million units.
In China, a key market for Volkswagen, sales fell by about 8% to 2.69 million vehicles amid intensifying competition from domestic automakers. Sales in North America also dropped by 10.4% last year due to the impact of U.S. tariffs.
By contrast, Volkswagen reported a 3.8% increase in sales in Europe, reaching 3.38 million vehicles. In South America, growth was even stronger, rising 11.6% to 663,000 units.
