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Tariffs mean $5.9 billion hit to Volkswagen's annual operating profit, CEO says
Finance

Tariffs mean $5.9 billion hit to Volkswagen's annual operating profit, CEO says

Published by Global Banking & Finance Review

Posted on May 6, 2026

1 min read

· Last updated: May 6, 2026

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Volkswagen CEO: Tariffs Threaten $5.9 Billion Blow to Annual Profits

Impact of Tariffs on Volkswagen's Operating Profit

CEO Oliver Blume's Statement

BARCELONA, May 6 (Reuters) - Tariffs represent a burden of 5 billion euros ($5.88 billion) per year on German auto giant Volkswagen's operating profit, the group's CEO, Oliver Blume, told an event in Barcelona on Wednesday. 

Details on Tariff Uncertainty

Blume did not specify whether he was referring to current levies or the tariff hike to 25% from 15% on imports of cars and trucks from the European Union threatened by U.S. President Donald Trump last week.  

Exchange Rate Reference

($1 = 0.8511 euros)

Reporting and Editing Credits

(Reporting by Joan Faus; Writing by David Latona; Editing by Andrei Khalip)

Key Takeaways

  • Oliver Blume warned that tariffs drag down VW's annual operating profits by roughly €5 billion per year, equating to $5.88 billion at current exchange rates. (elpais.com)
  • President Trump has announced that tariffs on EU‑made cars and trucks will increase from 15% to 25%, likely starting the week of May 4, amplifying cost pressures on automakers like Volkswagen. (investing.com)
  • VW has already seen its 2025 earnings halved—from €12.4 billion to €6.9 billion—and announced a headcount cut of 50,000 by 2030, highlighting the compounded impact of tariffs and market challenges. (elpais.com)

References

Frequently Asked Questions

How much do tariffs impact Volkswagen's annual operating profit?
Tariffs represent a burden of around 5 billion euros ($5.88 billion) per year on Volkswagen's operating profit.
Who reported the financial impact of tariffs on Volkswagen?
Volkswagen's CEO, Oliver Blume, reported the impact during an event in Barcelona.
Is the tariff burden related to existing or proposed U.S. tariffs?
The CEO did not specify whether he referred to current levies or the proposed tariff increase to 25% by the U.S.
What recent events have affected tariffs on European car exports?
U.S. President Donald Trump recently threatened to increase tariffs on imports of cars and trucks from the European Union to 25%.
Where did the CEO make the tariff impact statement?
Oliver Blume made the statement at an event in Barcelona.

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