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Volkswagen core brand group profit falls on EU carbon provision, US tariffs
Published by Global Banking & Finance Review®
Posted on May 2, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on May 2, 2025
1 min readLast updated: January 24, 2026
Volkswagen's Q1 profit for its core brand fell 46.3% due to EU carbon provisions and US tariffs. The VW passenger car unit saw an 84.9% profit drop.
(Reuters) -Volkswagen on Friday said its first-quarter operating profit for the core brand group, which includes its best-selling VW brand, declined by 46.3%, impacted by EU carbon provisions and write-downs on inventory related to U.S. tariffs.
The operating profit for the core brand group fell to 1.12 billion euros ($1.27 billion) from 2.08 billion a year ago, while its VW passenger car unit saw an 84.9% drop to 112 million euros. The core brand also includes Skoda, Seat and Cupra.
In April, Volkswagen said it included a 600-million-euro provision for potential fines for missing European carbon emissions targets in its first-quarter result.
However, if a new proposal is approved by the European Parliament, automakers may benefit for three years, instead of one, to boost sales of low emission vehicles and meet the EU emissions targets for cars and vans.
($1 = 0.8820 euros)
(Reporting by Amir Orusov, editing by Thomas Seythal)
Volkswagen's first-quarter operating profit for the core brand group declined by 46.3%.
The decline was impacted by EU carbon provisions and potential fines for missing European carbon emissions targets.
The VW passenger car unit saw an 84.9% drop in profit, falling to 112 million euros.
Volkswagen included a 600-million-euro provision for potential fines related to European carbon emissions targets.
A new proposal could allow automakers to benefit for three years to boost sales of low emission vehicles and meet EU emissions targets.
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