Volkswagen has reported a net loss of €1.07bn for the third quarter of 2025, compared with net income of €1.56bn in the same period a year earlier.
It was the group’s first quarterly loss since the second quarter of 2020, when performance was affected by the coronavirus pandemic.
Sales revenue rose to €80.3bn from €78.47bn a year ago.
Volkswagen said the result was affected by negative price and mix effects as well as US tariffs. It added that provisions and impairments related to the realignment of Porsche’s product strategy and a goodwill impairment at Porsche resulted in additional charges of around €4.7bn.
Volkswagen, which operates 10 brands including Skoda, Seat and Audi, said that the US administration’s tariff policy was costing the company about €5bn a year.
The company recorded an operating loss of €1.29bn for the quarter, reversing from operating income of €2.83bn in the prior year.
Vehicle deliveries increased to 2.22 million in the July to September period, up from 2.12 million a year earlier. Production rose to 2.12 million compared with 2.02 million a year ago.
For the first nine months of 2025, sales revenue edged up to €238.7bn from €237.3 billion. The company said slight growth in the Brand groups Core and Progressive more than offsets a decline in the Sport Luxury Brand Group.
Operating result for the nine months fell to €5.4 billion, down 58 percent from €12.8bn a year earlier, with an operating margin of 2.3%.
Net cash flow in the automotive division for the first nine months was €1.8bn, compared with €3.4bn in the prior year.
The company said net cash flow was 47% lower due to reduced operating cash generation, including cash outflows related to US tariffs and the acquisition of additional Rivian shares.
Nine-month vehicle sales reached 6.6 million, slightly above 6.5 million in the same period of 2024.
For the 2025 financial year, Volkswagen expects sales revenue to be broadly unchanged from the previous year, with an operating return on sales between 2% and 3%.
In the Automotive Division, the investment ratio is expected to be between 12% and 13%.
Arno Antlitz,CFO and COO of Volkswagen Group, said: “In the first nine months of the year, we have seen a mixed picture. On the one hand, there is the market success of our combustion engine and electric vehicles, as well as good progress with restructuring. On the other hand, the financial result is significantly weaker compared to the previous year. This is partly due to the ramp-up of lower-margin electric vehicles.
“Additionally, we recorded charges, primarily from increased tariffs and the adjustment of the product strategy at Porsche. Excluding these charges, the Group operating margin is 5.4%-at first glance a respectable figure in the current economic environment. But increased trading tariffs burden us by up to €5bn on a full-year basis.”
