Volkswagen must fundamentally overhaul its business as tariffs, geopolitical shocks and weak car demand batter the industry, the automaker said today, with a sharp first-quarter profit drop underscoring the urgency.
"In this environment, the cost-cutting measures planned so far are not enough," finance chief Arno Antlitz said as the company presented quarterly results, calling for further steps to secure the German group's future.
Volkswagen reported an unexpected 14% fall in first-quarter operating profit to €2.5 billion. Analysts had expected profit to be broadly flat, according to a Visible Alpha poll.
The group, which includes Porsche and Audi, has been hit by steep US tariffs expected to cost about €4 billion a year, and is battling to arrest sliding sales in China and the US.
Around 50,000 jobs are already to be cut across the group in Germany by 2030.
The Wolfsburg-based company posted quarterly revenue of €75.7 billion, down 2.5% and below analysts' estimate for €77.6 billion.
That translated into an operating margin of 3.3%. Volkswagen forecasts an operating margin of between 4 and 5.5% in 2026, after 2.8% in 2025.
The group confirmed its full-year guidance but warned that it does not factor in a potential escalation in the Middle East conflict, which could hit demand and drive up raw material costs globally.
