VW Group Recorded A 1 Billion Euro Third Quarter Loss

German auto giant Volkswagen posted a loss of 1.07 billion euros in the third quarter, slipping into the red for the first time since the second quarter of 2020.

The main reasons are higher US import tariffs and Porsche’s difficulties in switching to electric vehicles.

The number of vehicles sold globally increased slightly, which increased Volkswagen’s total revenues by 2.3 percent compared to the previous year to 80.3 billion euros.

The Volkswagen Group, which includes ten brands—along with Porsche, Audi, Skoda, and Cupra—has been struggling with business problems for some time. With more tariffs imposed by US President Donald Trump, the company continues to point to weak demand in the European market, rising costs, and fierce competition from China.

An additional blow is the decision of the Porsche management to slow down the process of electrification of its model range. Due to lower-than-expected demand for their electric vehicles, they decided to delay the introduction of some electric models and extend the life of some of those with internal combustion engines and hybrids.

Porsche represents a smaller part of the group in terms of the total number of vehicles sold, but due to its higher price range, it creates significant added value for the Volkswagen group, analysts emphasize.

In September, Volkswagen warned that this year at the group level, it will achieve 5.1 billion euros less revenue than expected.

• Also See: U.S. Import Taxes Cost Volkswagen €1.3 Billion In Losses