Volkswagen rally. The German company’s profit fell by almost half

Luc Williams

Volkswagen net profit

Net profit after taxes dropped by about 44% in 2025, to EUR 6.9 billion, from EUR 12.4 billion a year earlier, said the authorities of Volkswagen, the largest car manufacturer in Europe.

Reasons for worse financial results

He influenced last year’s result a number of factors. The restructuring of the Porsche sports car brand proved to be a particular burden, as it burdened the profit of the entire concern with additional costs of approximately EUR 5 billion. Additional expenses resulted from American customs duties and amounted to approximately EUR 3 billion.

The number of Volkswagen employees worldwide in 2025 was approximately 663,000.which means a slight decrease compared to the previous year. At the same time, the first effects of the employment reduction program in Europe, implemented by the Wolfsburg giant, are already visible – he writes “Frankfurter Allgemeine Zeitung”.

The number of vehicles delivered also decreased slightly. In 2025, the group delivered 8.98 million cars of all its brands worldwide, i.e. 0.5 percent. less than a year earlier. Shipments in Europe increased slightly, but the increase was not enough to offset declines in China and North America.

Prospects of the German concern

Group results improved at the end of the year compared to the first nine months of 2025. The company has set itself the goal of maintaining the positive trend, which is helped by the fact that 20 new models are to hit the market in 2026, many of which will be fully electric.

Chairman of the Board Oliver Blume said in a press release that the management managed to keep the company “on a stable course despite increasingly strong global turmoil.” However, he stressed that the company must continue to consistently reduce costs to respond to political tensions, price wars and protectionism. The company’s poor results also had an impact on Blume’s remuneration. The annual report shows his annual salary fell to just over €6 million from €9 million the previous year. Moreover, the company’s management board resigned from 11 percent. your salary.

Mateusz Obremski from Berlin

About LUC WILLIAMS

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