As of October 30, 2025, the Volkswagen Group reported a €1.3 billion operating loss for the third quarter, reversing a profit of €2.8 billion a year earlier. The decline stemmed largely from €4.7 billion in charges at subsidiary Porsche, following a strategic reversal on electric vehicles, and an expected €5 billion hit from U.S. import tariffs this year.
Despite the setback, Volkswagen maintained its full-year guidance, citing steady demand for electric models in Europe and ongoing restructuring efforts. The company noted that the outlook assumes an adequate supply of semiconductors amid rising concerns over trade tensions involving Dutch chipmaker Nexperia.
Volkswagen CEO Oliver Blume, who also leads Porsche, announced he will step down as Porsche CEO at the turn of the year, retaining his role at the parent company as both automakers navigate a challenging transition period.
#Investor Takeaway
Volkswagen’s quarterly loss highlights the financial strain of its EV transition and exposure to global trade risks. However, the decision to maintain guidance suggests management confidence in ongoing efficiency measures and restructuring programs.
#Market Impact
Shares in Volkswagen rose 1.2% in early Frankfurt trade despite the reported loss, as investors viewed the results as less severe than analysts had forecast. Market sentiment may hinge on the company’s ability to offset tariff and restructuring costs in the final quarter.
#What’s Next
Volkswagen’s focus will turn to delivering on cost-cutting targets and stabilizing operations at Porsche. Key developments to watch include the company’s next earnings release, potential tariff policy changes, and updates on EV rollout and chip supply stability.