Volkswagen swings to $2 billion loss in Q3 on tariff, Porsche woes
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Volkswagen was hit by billions of euros in costs from US tariffs and a costly strategy reversal on electric vehicles at its subsidiary Porsche.
PHOTO: REUTERS
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BERLIN – Volkswagen made a €1.3 billion (S$2 billion) operating loss in the third quarter, hit by billions of euros in costs from US tariffs and a costly strategy reversal on electric vehicles (EVs) at its subsidiary Porsche
The result, down from a €2.8 billion operating profit for the group a year earlier, was less severe than the €1.7 billion loss forecast by analysts in a poll by Visible Alpha.
Overall, tariffs as well as costs and writedowns relating to the product overhaul at Porsche led to €7.5 billion in charges for Volkswagen in the July to September period, while the transition to EVs also weighed on profitability, it said.
Volkswagen is under pressure to adapt to higher US import tariffs expected to cost the group up to €5 billion in 2025.
“Our focus will be – amongst others – on the targeted use of our scale and exploiting synergies within the group even more effectively,” chief financial officer Arno Antlitz said.
The company maintained its guidance on Oct 30, forecasting a group operating margin in 2025 in the range of 2 per cent to 3 per cent, with revenues expected around the prior-year level. REUTERS
