Volkswagen reduces the guidance after $ 1.5 billion of US tariffs

Germany Volkswagen On Friday, it reduced its instructions in the entire year and reported a sharp decrease in profit in the second quarter, as the auto giant moved to the subversive impact of American definitions and restructuring costs.

The largest car maker in Europe recorded 3.83 billion euros ($ 4.49 billion) for the three months to June, with 29 % from 5.4 billion euros a year ago. Analysts expected the second quarter profit to reach 3.94 billion euros, according to the compatibility of the facts of consensus.

Volkswagen recorded sales revenue in the second quarter of 80.8 billion euros, and the expectations of analysts of 82.2 billion euros lost.

The automotive company said that the impact of US definitions alone cost the company 1.3 billion euros in the first six months of the year. Meanwhile, the provisions of restructuring amounted to 700 million euros during the same period.

Looking forward, Volkswagen said it is now expected that its operating return for 2025 will range from sales between 4 % to 5 %, down from previous forecasts from 5.5 % to 6.5 %. The whole year sales are expected to be in line with the level achieved last year, compared to an increase of 5 % previously.

The results come as car industries in Europe struggle To reach a series of industry challenges, including strong competition from the brands of Chinese cars and the US President Donald TrumpImporting tariff of 25 %.

The auto sector is widely vulnerable to American definitions, especially given the high globalization of supply chains and intense dependence on manufacturing operations throughout North America.

“If you look at the first half of the year, you will see a mixed picture mainly,” said Arno Antigel, the Volkswagen Financial Director, for CNBC’s.Squawk Box EurobeFriday.

“First of all, you see a tremendous success for our products, whether on the side of the combustion engine or on the side of the electric car. In Europe, each fourth vehicle comes from the Volkswagen group, but as I said, our numbers have declined significantly.”

Volkswagen Financial Director said that the company’s decline in EVS is weight on margins, noting that EVS margins are less compared to international combustion vehicles (ICE).

Regardless, Antigense said a haven such as the effect of American definitions and the restructuring of a combined cost of about 2 billion euros.

The most prominent main profits:

• Volkswagen vehicle sales recorded 80.8 million in the three months to June, a 3 % decrease from the same last period.
• The income arrangement for vehicles in Western Europe increased by 19 % in the first half of the year.
• The company said it expects an investment in the entire year ranging from 12 % to 13 % in the car department.

Trump recently threatened the European Union car import duties to 30 % from August 1, Pressure On the trading bloc 27 countries. Since then, the European Commission, the executive arm of the European Union, has been. Looking at its response.

Volkswagen said that the 27.5 % American import tariff is supposed to continue in progress in the second half of the year, noting that there is a “state of uncertainty” regarding commercial policy.

Volkswagen shares increased by 2.2 % at 1:18 pm London time (8:18 am EST), reflecting the previous losses.

“Yes, they have fought to keep up with the export market, but the home market is at least at the present time. They are increasing the sales of EV. I have now reached 11 % globally than its total sales – and in Europe much more.”Europe early editionFriday.

“Maybe they have benefited from Tesla sales deteriorated But it is still well working well in Europe. “

Volkswagen vehicle sales growth in the first half recorded 19 % in South America, 2 % in Western Europe and 5 % in Central and Eastern Europe. The company said that this is more than the expected expected decline in China – due primarily to tariffs – a 16 % decrease in North America.

The company said that its exploitation in all electric vehicles in the first half of 2025 increased by 62 %.

– Jenny Reed of CNBC contributed to this report.