The Volkswagen Group has revealed a substantial €1.3 billion loss for the third quarter of 2025, a figure that, while smaller than initial analyst predictions, nonetheless underscores persistent challenges within the automotive giant. The announcement, released on Thursday, paints a picture of a company grappling with escalating geopolitical pressures and internal strategic shifts.
The significant loss is largely attributed to €7.5 billion in exceptional burdens. These include increased tariffs impacting global supply chains, a costly realignment of Porsche’s product strategy and substantial write-downs linked to the business and company value of Porsche itself. This last point raises critical questions about the long-term valuation and strategic direction of the iconic sports car brand under the Volkswagen umbrella.
Volkswagen’s Chief Financial Officer, Arno Antlitz, characterized the results as presenting a “mixed picture” a deliberately understated assessment given the magnitude of the financial hit. While he highlighted “good progress in restructuring efforts” the substantial loss raises concerns about the efficiency and effectiveness of these initiatives. The write-downs specifically suggest a reassessment of Porsche’s position within the group, potentially reflecting anxieties about its future profitability and competitiveness.
Looking ahead, Volkswagen projects broadly stable revenue for the full year, mirroring 2024 levels. However, the anticipated operating profit margin for the group, predicted to fall between 2.0% and 3.0%, remains a source of concern for investors and analysts alike. This relatively modest margin suggests that Volkswagen is struggling to navigate a complex environment of rising costs, geopolitical instability and evolving consumer preferences, prompting a deeper scrutiny of its long-term profitability and strategic resilience. Observers are keenly watching whether the company can deliver on its restructuring promises and revitalize its performance in the coming quarters, or whether this latest setback signals a prolonged period of financial strain.
