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Volkswagen CFO Calls For 'Good Compromise' On US Auto Tariffs
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July 25, 2025
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6:23Now PlayingVolkswagen's Chief Financial Officer 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.
The automaker now sees an operating return on sales as low as 4%, from at least 5.5% previously, after the US duties added €1.3 billion ($1.53 billion) in costs during the first half. Volkswagen also cited internal restructuring expenses and greater sales of lower-margin electric vehicles for the forecast change.
Europe’s largest carmaker is under pressure to cut costs and improve its products to deal with crises in three key markets. Trump’s levies are eating into sales and earnings for import-dependent Audi and Porsche AG, while muted demand and high production costs weigh on profits in Europe. Volkswagen also is losing market share in China, where consumers increasingly opt for local brands.
Volkswagen now sees flat revenue for the year, from 5% growth previously, and also reduced its outlook for free cash flow. The lower end of its forecast assumes the 27.5% US tariffs will stick in the second half, while the upper end foresees the levies being reduced to 10%.
The German manufacturer isn’t alone in facing challenges: Some of its peers are dealing with tumult in top management, with Stellantis NV having recently named a new chief executive officer and Renault SA seeking a permanent CEO. Volkswagen is counting on partnerships with Rivian Automotive Inc. in the US and China’s Xpeng Inc. to bolster its products, though new models from those efforts won’t be available until next year.
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