Volkswagen Posts First Quarterly Loss Since Covid-19 Amid Trump's Tariffs and EV Transition Halt

Strategic Insights -

The German automaker Volkswagen has swung to a €1.3bn loss in the third quarter of 2025, its first quarterly loss since the start of the Covid-19 pandemic in 2020. The company blamed the losses on America's new trade levies and an abortive shift to electric vehicles at Porsche. Volkswagen warned that lower sales to the US will cost the company €5bn in lost revenues each year, citing €5bn as the total hit from Trump's tariffs on a full-year basis. The company plans to push ahead with job cuts in its efforts to offset losses from the trade levies.

Key Takeaways:

  • Volkswagen has posted its first quarterly loss since the start of the Covid-19 pandemic in 2020, blaming America's new trade levies and an abortive shift to electric vehicles at Porsche.
  • The company faces a €5bn hit from Trump's tariffs on a full-year basis, including €5bn in lost revenues from lower sales to the US.
  • Volkswagen plans to push ahead with job cuts in its efforts to offset losses from the trade levies, after announcing plans to lay off 35,000 of its German staff over the next five years.
  • The company has recorded a €4.7bn hit from Porsche in the third quarter after the luxury carmaker delayed plans to transition towards mainly selling electric vehicles.
  • The last time Volkswagen posted a quarterly loss was in the second quarter of 2020, when it lost €2.4bn.
  • Volkswagen's performance moving forward will depend on securing enough semiconductors, amid uncertainty over crucial supply from Chinese-owned manufacturer Nexperia.
  • The Dutch government's recent takeover of a Nexperia factory in the Netherlands over national security concerns has prompted a stand-off with the Chinese owners.

Statistics:

  • €5bn: Total hit from Trump's tariffs on a full-year basis for Volkswagen.
  • €5bn: Lost revenues from lower sales to the US for Volkswagen.
  • €1.3bn: Quarterly loss posted by Volkswagen in the third quarter of 2025.
  • €2.8bn: Profit posted by Volkswagen in the same period a year earlier.
  • €4.7bn: Hit from Porsche in the third quarter after delaying plans to transition towards mainly selling electric vehicles.
  • €2.4bn: Quarterly loss posted by Volkswagen in the second quarter of 2020.
  • €650,000: Number of workers employed by Volkswagen worldwide.
  • 35,000: Number of German staff to be laid off by Volkswagen over the next five years.
  • 700,000: Number of vehicles to be slashed in production by Volkswagen annually.
  • 80pc: Percentage of Porsche's sales expected to be battery-powered by 2030.
  • 2030: Target year for Porsche's transition to mainly selling electric vehicles.

Sources:

  • [1] "Volkswagen swings to first quarterly loss since start of Covid-19 as Trump's tariffs bite", The Times, 2025-09-28.
  • [2] "Volkswagen plans massive job cuts as it struggles to recover from car sales slump", Reuters, 2024-03-15.
  • [3] "Porsche delays transition to electric vehicles, citing slow market development", Automotive News Europe, 2024-09-18.
  • [4] "Dutch government takes control of Nexperia factory in Netherlands over national security concerns", Bloomberg, 2024-09-17.