Latest news with #ArnoAntlitz
Yahoo
4 days ago
- Automotive
- Yahoo
Hammered by US tariffs, Volkswagen's profit drops sharply
The biggest European carmaker, Volkswagen Group, saw its profit decline sharply in the first six months of 2025; the operating result came in at €6.7bn, 33% lower than a year ago. Sales revenue was roughly in line with the previous year's, at €158.4bn. According to the company's statement, the decline in income stemmed from increased US import tariffs, restructuring measures that cost €700 million and higher sales of lower-margin all-electric models. 'Excluding these items, the operating margin in the second quarter is at nearly 7%, representing the upper end of our expectations,' said Arno Antlitz CFO & COO at Volkswagen Group. Europe's largest carmaker is under pressure to cut costs as its net cash flow came in at -€1.4bn for the first six months of 2025. Volkswagen's share price was up by more than 3% around midday on Friday in Europe. Sales remain stable, and EVs could bring relief Due to the increased tariffs, sales in the US dropped sharply by 16%, but a 19% growth in South America, solid figures in Western Europe (+2 %), as well as Central and Eastern Europe (+5 %) compensated for this. Overall, new car sales in the EU dropped by 1.9% in the first half of 2025, year-on-year, according to the European Automobile Manufacturers' Association (ACEA). Volkswagen's overall sales in this period increased by 2.3% in the bloc, led by Volkswagen, Skoda and Cupra models. The car maker reported that order intake for EVs increased by 62%. 'In Europe, we expanded our leading position in electric mobility, with a market share of 28% and order books remain well filled,' said the CEO, Oliver Blume. Related Volkswagen and Chinese partner SAIC to close Nanjing production plant Exclusive: Chinese electric carmaker Zeekr eyes pan-European growth despite tariffs, acting CEO says What is in the cards for Volkswagen? The German carmaker updated its financial guidance for investors, adding that it expects sales revenue to be in line with the previous year's figure, instead of the +5% they previously projected. The operating return on sales is now expected to fall between 4% and 5%, down from 5.5% to 6.5%. The most pessimistic scenario assumes that US tariffs of 27.5% will continue to apply in the second half of 2025, the optimistic forecasts refer to US tariffs reduced to 10%. "There is high uncertainty about further developments with regard to the tariffs, their impact and any reciprocal effects," read the statement. The European Union and the United States are currently negotiating a trade agreement to settle tariffs between the countries before the 1 August deadline. Washington threatened the EU with 30% tariffs if there is no deal by that day. Meanwhile, the EU has also prepared its own countermeasures to deploy if the time comes. 'We are counting on the European Commission and the US government to reach a balanced outcome on the tariff issue,' said the CEO of Volkswagen on a call on Friday. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Automotive
- Yahoo
Volkswagen takes $1.5B hit from tariffs
This story was originally published on Automotive Dive. To receive daily news and insights, subscribe to our free daily Automotive Dive newsletter. Europe's biggest automaker by volume, Volkswagen, reported a 1.3 billion euro ($1.5 billion) blow to its first-half revenues, blaming the 25% U.S. tariffs on foreign-made vehicles in effect since April. The group also cut its full-year sales and profit margin forecasts in line with other European automakers, including Renault. At the same time, inexpensive Chinese imports into Europe are putting an extra squeeze on the continent's legacy manufacturers now ramping up non-battery-electric-vehicle imports that are not subject to European Union tariffs. Volkswagen now estimates its operating profit margin for this year will slip to between 4% and 5% when it had previously forecasted a range of 5.5% to 6.5%. Chief Financial Officer Arno Antlitz, in a company statement, spells out the ongoing challenges of the U.S. auto tariffs, saying VW is being forced into realigning its business model and suggesting less of a focus on U.S. exposure. 'What really matters is cash in the bank,' he says, adding, 'That's why we must press ahead with our ongoing programs to improve earnings and pick up the pace where necessary.' Nonetheless, CEO Oliver Blume puts a positive spin on the group's healthy European sales performances, saying: 'In Europe we expanded our leading position in electric mobility, with a market share of 28%, and order books remain well filled… we expect the positive trend to continue in second half of the year.' Recommended Reading EU preps latest round of US tariff countermeasures
Yahoo
4 days ago
- Automotive
- Yahoo
VW CFO on US Auto Tariffs, Electric Vehicles, Earnings
Volkswagen CFO Arno Antlitz speaks to Bloomberg after the German automaker lowered its financial outlook for the year, with the escalating cost of US President Donald Trump's tariffs weighing on earnings at the Audi and Porsche brands. He talks with Guy Johnson the firm's factory in Wolfsburg, Germany. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Automotive
- Yahoo
Volkswagen stung by tariffs, but trade deal based on US investments may be coming
German auto giant Volkswagen (VWAGY) is feeling the effects of President Trump's tariff policy. An EU-US trade deal can't come soon enough for the Wolfsburg-based automaker. Volkswagen reported that its first-half revenue for 2025 came in at 158.4 billion euros ($185.7 billion), essentially in line with last year's figures, but operating result (or operating profit) slid by a third to 6.7 billion euros ($7.86 billion), with tariffs the culprit. "Decline in Operating Result primarily due to high costs from increased U.S. import tariffs," VW said, noting a figure of 1.3 billion euros ($1.52 billion), with other expenses like restructuring tacking on another 700 million euros ($820.3 million) in profit hits. "Our half-year figures present a contrasting picture: on the one hand, we achieved strong product success and made progress in realigning the company," Volkswagen CFO Arno Antlitz said in a statement. "On the other, the operating result declined by a third year-on-year — also due to higher sales of lower-margin all-electric models. In addition, increased US import tariffs and restructuring measures had a negative impact." Though the news was not exactly good, it was likely better than what investors expected, with VW stock pulling higher in Friday trade. Nevertheless, the results of the first half mean VW slashed its full-year revenue estimate to be in line with last year, from a 5% gain it previously forecast, with the firm's operating return on sales (or operating margin) now seen in the 4% to 5% range from a prior 5.5% to 6.5%. Full-year automotive net cash flow gets chopped nearly in half to 1 billion to 3 billion euros ($1.17 billion to $3.52 billion) from 2 billion to 5 billion euros ($2.34 billion to $5.86 billion). Read more: How to find the best luxury car insurance Regarding that guidance, VW said the upper end assumes tariffs will be reduced to 10%, whereas the lower end assumes a 27.5% tariff applies through the second half of the year. "There is high uncertainty about further developments with regard to the tariffs, their impact and any reciprocal effects," the company said. Reports suggest EU and US negotiators are aiming at a 15% tariff for EU goods coming into the US that would also apply to autos. Currently, the US imposes 25% auto sector tariffs on foreign-made vehicles. "We hope that it will come to a well-balanced deal between the US and the EU, which allows fair trade between the regions," VW CEO Oliver Blume told investors, per Reuters. Blume also suggested VW may have its own deal with the US government, contingent upon investment in the US. "We have a very attractive investment package we will do there," Blume said, adding that the company has been in "good discussions" with White House negotiators. Blume indicated investments would come in the form of a "scalable program," without adding more details, though he mentioned the possibility of opening an Audi plant in the US. Currently, Audi builds vehicles for the US market in Europe and Mexico. Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram. Sign in to access your portfolio
Yahoo
5 days ago
- Automotive
- Yahoo
Volkswagen stung by tariffs, but trade deal based on US investments may be coming
German auto giant Volkswagen (VWAGY) is feeling the effects of President Trump's tariff policy. An EU-US trade deal can't come soon enough for the Wolfsburg-based automaker. Volkswagen reported that its first-half revenue for 2025 came in at 158.4 billion euros ($185.7 billion), essentially in line with last year's figures, but operating result (or operating profit) slid by a third to 6.7 billion euros ($7.86 billion), with tariffs the culprit. "Decline in Operating Result primarily due to high costs from increased U.S. import tariffs," VW said, noting a figure of 1.3 billion euros ($1.52 billion), with other expenses like restructuring tacking on another 700 million euros ($820.3 million) in profit hits. "Our half-year figures present a contrasting picture: on the one hand, we achieved strong product success and made progress in realigning the company," Volkswagen CFO Arno Antlitz said in a statement. "On the other, the operating result declined by a third year-on-year — also due to higher sales of lower-margin all-electric models. In addition, increased US import tariffs and restructuring measures had a negative impact." Though the news was not exactly good, it was likely better than what investors expected, with VW stock pulling higher in Friday trade. Nevertheless, the results of the first half mean VW slashed its full-year revenue estimate to be in line with last year, from a 5% gain it previously forecast, with the firm's operating return on sales (or operating margin) now seen in the 4% to 5% range from a prior 5.5% to 6.5%. Full-year automotive net cash flow gets chopped nearly in half to 1 billion to 3 billion euros ($1.17 billion to $3.52 billion) from 2 billion to 5 billion euros ($2.34 billion to $5.86 billion). Read more: How to find the best luxury car insurance Regarding that guidance, VW said the upper end assumes tariffs will be reduced to 10%, whereas the lower end assumes a 27.5% tariff applies through the second half of the year. "There is high uncertainty about further developments with regard to the tariffs, their impact and any reciprocal effects," the company said. Reports suggest EU and US negotiators are aiming at a 15% tariff for EU goods coming into the US that would also apply to autos. Currently, the US imposes 25% auto sector tariffs on foreign-made vehicles. "We hope that it will come to a well-balanced deal between the US and the EU, which allows fair trade between the regions," VW CEO Oliver Blume told investors, per Reuters. Blume also suggested VW may have its own deal with the US government, contingent upon investment in the US. "We have a very attractive investment package we will do there," Blume said, adding that the company has been in "good discussions" with White House negotiators. Blume indicated investments would come in the form of a "scalable program," without adding more details, though he mentioned the possibility of opening an Audi plant in the US. Currently, Audi builds vehicles for the US market in Europe and Mexico. Pras Subramanian is the lead auto reporter for Yahoo Finance. You can follow him on X and on Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
