The Volkswagen Group has released its half-year results for 2025, reporting slight growth in vehicle sales and a significant increase in sales revenue at Financial Services. However, the company faced challenges due to high costs from increased U.S. import tariffs, provisions for restructuring at Audi, Volkswagen Passenger Cars, and Cariad, as well as expenses related to CO₂ regulation.
The operating result declined primarily because of these factors, with the operating margin before increased U.S. tariffs and restructuring standing at 5.6%. Net cash flow was affected by M&A expenditures and payments related to restructuring measures and U.S. import tariffs.
Growth was observed in South America (+19%), Western Europe (+2%), and Central and Eastern Europe (+5%), offsetting declines in China (–3%) and North America (–16%). There was a notable increase in incoming orders in Western Europe driven by new models across all drive types.
Volkswagen Group expects sales revenue for 2025 to align with the previous year's figures. The operating return on sales is anticipated to range between 4.0% and 5.0%.
In the Automotive Division, an investment ratio between 12% and 13% is expected for 2025, with automotive net cash flow projected between EUR 1 billion and EUR 3 billion. Net liquidity is expected to be between EUR 31 billion and EUR 33 billion.
The group faces challenges from political uncertainty, expanding trade restrictions, geopolitical tensions, competition intensity, volatile markets, and stringent emissions-related requirements.
Brand group Core achieved progress in cost efficiency with an operating margin of 4.8%. Škoda recorded a strong operating margin of 8.5%, achieving its best quarterly result with around EUR 740 million.
Brand group Progressive generated an operating result of EUR 1.1 billion but faced challenges from model changes, restructuring expenses, U.S. import tariffs, and CO₂ compliance.
Porsche saw an 11% decline in sales units with a decrease in sales revenue by 9% to EUR 16.1 billion due to special charges related to battery activities and strategic realignment measures.
TRATON GROUP's commercial vehicle business experienced a decline due to purchasing reluctance in North America and weaker demand in Europe.
CARIAD's software delivery led to a sales revenue increase of approximately 30%, although its operating result remained negative at EUR –1.2 billion.
Overall financial data showed a decline compared to the previous year across various metrics such as earnings before tax (-32.9%) and earnings after tax (-36.3%).