VW Posts US$1.5 Billion 3Q25 Loss as EV Strategy and Tariffs Bite

Volkswagen Group reported a third-quarter operating loss of €1.3 billion (US$1.52 billion), weighed down by costly strategic adjustments at its Porsche subsidiary and ongoing pressure from US import tariffs. The results, released Thursday, reflect billions in charges linked to Porsche’s EV strategy shift and potential tariff impacts that could cost Volkswagen up to €5 billion this year.

“These effects will continue, which is why we must rigorously implement performance programs, drive efficiency, and explore new approaches,” said Arno Antlitz, CFO, Volkswagen Group. He described the first nine months of 2025 as a “mixed picture,” noting strong demand for Volkswagen EVs in Europe alongside margin pressures from the EV transition.

Volkswagen’s operating loss was below analysts’ expectations of €1.7 billion but well below last year’s €2.8 billion operating profit. Shares rose 1.2% in Frankfurt following the release.

Porsche, 75.4% owned by Volkswagen, posted a pre-tax loss of nearly €1 billion in Q3, with earnings after tax falling almost 96% for the first nine months of 2025. The strategic shift includes cancelling ambitious EV targets, delaying new e-model rollouts, and extending combustion-engine lifecycles. Analysts estimate the adjustment could cost Porsche €5.1 billion in 2025.

Oliver Blume, CEO of both Volkswagen and Porsche, will step down from the Porsche role at year-end, retaining leadership of the parent company. Investors had questioned the feasibility of one executive managing both companies amid these challenges.