Volkswagen Takes 1.3‑Bn‑Euro Blow as Trump Tariffs Strike
Volkswagen Adjusts Expectations Amid U.S. Tariff Pressure
Tariff‑Driven Losses in the First Half
- 1.3 billion euros impact from U.S. tariffs in the first half of 2024
- 38.5 percent year‑on‑year drop in net profit to 7.28 billion euros
- Higher sales of lower‑margin electric vehicles and restructuring costs exacerbated the hit
Finance Chief Signals “Right Track”
Arno Antlitz noted that, after excluding tariffs and restructuring, Volkswagen’s performance sits at the upper end of expectations.
Unprecedented Job‑Cut Deal with Unions
Last December, the group agreed with unions to cut 35,000 German jobs by 2030, aiming to save 15 billion euros annually.
Revised Revenue and Profit Outlook
- Profit margin forecast dropped to 4‑5 percent (previously 5.5‑6.5 percent)
- Assumptions: U.S. tariffs of 10 percent (best case) or 27.5 percent (worst case)
- Previous guidance from April did not account for these duties
North American Sales Decline
- Volume sales fell 16 percent in North America, mainly due to tariffs in the first half
- Global volume sales rose slightly in the same period
Impact on European Carmakers
- Stellantis reported a 25 percent plunge in North American sales volume in Q2 2024
- U.S. and EU diplomats are negotiating in advance of Trump’s deadline, with a potential blanket duty of 30 percent after August 1 if no agreement is reached
