German carmaker Volkswagen reduced its net profit in the second quarter of 2025 by more than a third (36.3%) compared to the same period last year. It amounted to €2.29 billion, according to the carmaker’s report.
Operating profit also fell significantly, dropping 29% to €3.83 billion (€5.43 billion a year earlier), as did quarterly revenue, which fell from €83.34 billion in the second quarter of 2024 to €80.81 billion in the current period.
At the same time, car sales increased by 0.2% to 2.263 million units, while production fell by 0.6% to 2.325 million.
Among the reasons for the decline, Volkswagen cited low sales of Porsche and Audi brands, as well as high restructuring costs and US tariffs.
Volkswagen is currently in a serious crisis, closing its factories and laying off employees. The latest plant to close to date is VW’s joint venture with SAIC in China.
At the end of 2024, Volkswagen laid off 35,000 employees and later announced the closure of two plants in Germany, which may subsequently be taken over by the Chinese company Chery.
Earlier, Volkswagen’s management acknowledged its technological lag in modern software and electric motors. According to the carmaker’s CEO Oliver Blume, the German automotive industry had “rested on its laurels for too long,” missing out on global changes in the world car market.
