Measures deemed unnecessary by the Commission.
In the second quarter of this year, the Volkswagen Group's core brand generated more operating profit than Audi and Porsche combined, despite a significant drop in profits for the group as a whole. The operating result fell by over 29% to €3.83 billion, with an operating margin of 4.7%.
However, the group's profits dropped by a third, amounting to €2.29 billion after taxes, due to various factors including high restructuring costs and the strong performance of less profitable electric vehicles. The operating profit margin on sales for the group is expected to be between 4.0 and 5.0 percent.
The financial struggles of Audi and Porsche within the Volkswagen Group are primarily due to the heavy impact of U.S. tariffs imposed in 2025. These tariffs caused a sharp downturn in profits for these divisions: Audi’s profit dropped about 64%, and Porsche’s profit fell around 91% in the first half of 2025.
In contrast, while Volkswagen Group as a whole reported a substantial operating profit hit of about €1.3 billion (US $1.5 billion), the impact was more distributed due to the group's diversification.
Regarding restructuring measures, the Volkswagen Group is managing a "challenging environment" with caution, expecting net liquidity in the Automotive Division to be between EUR 31 and 33 billion in 2025. This implies ongoing financial management and possibly strategic adjustments across divisions.
Sales of cars in the USA plummeted by 16% due to the tariffs, resulting in €1.2 billion in import tariffs for the group alone. Audi's operating profit in Q2 dropped by two-thirds to €550 million, and Porsche's operating profit in the car business, excluding financial services, was just €154 million, a significant decrease from the previous year.
CEO Oliver Blume is satisfied with the increasing sales of electric vehicles, stating that VW has expanded its leading position in electromobility with a 28 percent market share in Europe. "Our order books are well filled," according to Blume.
Despite the challenges, Volkswagen Group expects lower profits for the current year due to US tariffs. To address these issues, 20,000 employees have agreed to job cuts, mostly through early retirement, with 4,000 jobs already cut. The core Volkswagen brand earned significantly more in Q2, amounting to €991 million, almost six times as much as in the prior year.
In summary, the financial struggles of Audi and Porsche mainly stem from U.S. tariffs elevating import costs and reducing demand, sharply cutting profits. The Volkswagen Group, while affected, is more diversified, so the impact is distributed. No specific restructuring measures for Audi and Porsche are described in the sources; the Group’s management acknowledges the difficult environment and is likely pursuing financial prudence and strategic adjustments across its brands.
- In an effort to offset the financial losses due to U.S. tariffs, the Volkswagen Group is exploring opportunities in the service, industry, finance, and transportation sectors, with the aim of diversifying their offerings beyond the automotive industry.
- Despite the challenges faced by Audi and Porsche in the automotive division, the Volkswagen Group is optimistic about the potential growth in the electric vehicle market, particularly in the finance sector, where innovative services such as leasing and battery subscription models are being considered to attract more customers.
