Transportation
VW’s Operating Profit Fell Almost 40% Ahead of US Tariffs
A customer views a new vehicle displayed for sale at a Volkswagen AG dealership in Miami, Florida, in April.
Photographer: Eva Marie Uzcategui/BloombergThis article is for subscribers only.
Volkswagen AG’s profit tumbled in the first quarter as the automaker grappled with one-off charges and early effects of US tariffs that are poised to drive up costs for the industry.
Operating profit for the period came in at €2.8 billion ($3.1 billion), the company said Wednesday detailing preliminary results. The figure, down from €4.6 billion a year ago, was “significantly” below market expectations in part because of the impact US tariffs had on the valuation of vehicles in transit. Europe’s CO2 rules and restructuring costs also affected the result.