Volkswagen posts 1-billion-euro loss on tariffs, Porsche woes

FRANKFURT, (Germany): Volkswagen reported its first quarterly loss for five years Thursday, topping one billion euros, as the German auto giant struggles with US tariffs and a troubled electric shift at subsidiary Porsche.

The loss in the July-to-September period amounted to 1.07 billion euros (USD1.24 billion) and was the first suffered by Europe’s biggest carmaker since the second quarter of 2020, when it was hit by the coronavirus pandemic.

The 10-brand manufacturer, whose models range from Skoda to Seat and Audi, warned that US President Donald Trump’s tariff blitz was costing it five billion euros on an annual basis.

“The result is much weaker compared to the same period last year,” Volkswagen finance boss Arno Antlitz said. “Higher tariffs, adjusting the product strategy at Porsche and write downs to Porsche’s value cost 7.5 billion euros.”

It is the latest bad news for VW and the wider German auto industry, and reflects broader problems for traditional manufacturers in Europe’s struggling top economy.