They’re not used to that in Wolfsburg: Volkswagen posts mega loss for first time in years

More than a billion euros

In the third quarter of 2025, the German automaker suffered a loss of more than 1.1 billion euros – a hard blow for a company normally accustomed to billion-dollar profits. The culprits? A combination of high U.S. import duties and problems at subsidiary brand Porsche.

Trump

The US government – led by you know who – recently raised import tariffs on European cars to 15 percent. That joke is estimated to cost Volkswagen some 5 billion euros this year. As if that weren’t enough, Porsche is dragging its numbers down further. The sports car maker had to write off a lot on its electric projects, as the transition to all-electric is proceeding a lot slower than planned. Porsche, once the pride (and profit engine) of the group, thus suddenly turns out to be a problem child. The demand for electric sports cars is disappointing, especially in China where local brands are flooding the market with affordable EVs that also have good handling and a few hundred horsepower.

Turnaround in strategy

Volkswagen CFO Arno Antlitz called the result “much weaker than last year” and warned that the combination of trade conflicts and costly restructuring will continue for some time. Still, Volkswagen’s sales rose slightly, to more than 80 billion euros, thanks to higher sales volumes. But little of that growth therefore remains below the line.

Austerity

The carmaker plans to make major cuts in the coming years and to share (even) more parts and models between brands – for example, between Volkswagen, Skoda and Cupra – to achieve economies of scale. “We cannot continue as we are now,” Antlitz said during the presentation of the figures.

Chips and China

As if things weren’t complicated enough for Volkswagen, a new chip shortage is also looming. The conflict surrounding the Chinese-Dutch chip manufacturer Nexperia is once again putting pressure on the supply of essential chips. And without chips no cars. Volkswagen warns that production targets will be jeopardized if the problem persists.

The mood in Wolfsburg

In short, Wolfsburg is not used to losses. The last time the group dipped into the minus was during the corona crisis. Then there was understanding; now concern prevails. Because although Volkswagen still had 3.4 billion euros in profit for the first nine months of 2025, that is almost 60 percent less than last year. The official forecast remains intact – a profit margin of 2 to 3 percent – but behind the scenes there is mostly concern.

Also see: New VOLKSWAGEN T-ROC (2025): everything from A to Z explained – Walkaround – AutoRAI TV