U.S. tariffs and restructuring cost have hit Volkswagen Group’s bottom line by about €1.3 billion ($1.5 billion) in the third quarter of 2025, CFO and COO Arno Antlitz told investors during the automaker’s Q3 earnings presentation.
The ongoing extra trade charges added to other headwinds including lower margins on electric vehicle production and Porsche’s forced switch back to internal combustion engine products that cost the Group another €4.7 billion, Antlitz told an investors online webcast.
Porsche turned back towards ICE powered products in September, abandoning plans for an all-electric SUV that will now be offered exclusively with ICE and plug-in hybrid powertrains, because of poor consumer demand and low production margins.
The combined effects on VW’s Q3 saw a €1.3 billion operating loss compared to the same period last year, said Antlitz.
However, Europe remains strong for the Group as a whole with “the huge success of our products with combustion engine and electric vehicles, positive momentum in order intake in Europe persists and is reflecting the strong support from our customers,” said Antlitz.
Another potential growth point is the company’s decision due by the end of the year to set up a production plant in the U.S. for its luxury brand Audi, Antlitz told an investor Q&A session.
He added that the Group trimmed its headcount by 7,000 so far this year, and by 11,000 since the end of 2023, as the company continues with its cost-cutting strategy.
Antlitz also brushed off media comments that car production may be halted owing to the Dutch government’s takeover of Chinese-owned semiconductor maufacturer Nexperia, citing security risks. Antilz said the VW Group secures chips on a “day-to-day” or “week-by-week” basis and that alternative supplies of low-grade chips can be found if necessary.
