Newscasts - Porsche problems drag tariff-hit Volkswagen deep into red in Q3

Porsche Automobil Holding SE

30/10/2025 08:25

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Source: 'Reuters - Business videos'

Description: Volkswagen made a 1.3-billion-euro ($1.52 billion) operating loss in the third quarter, hit by billions of euros in costs from U.S. tariffs and a costly strategy reversal on electric vehicles at its subsidiary Porsche the company said on Thursday. Ciara Lee reports.

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Video Transcript:

Volkswagen made a $1.52 billion operating loss in the third quarter. It was hit by billions of dollars in costs from US tariffs, as well as a costly strategy reversal on electric vehicles at its subsidiary, Porsche. The result was down from a $3.25 billion operating profit for the group a year earlier. VW is under pressure to adapt to higher US import tariffs expected to cost the group up to $5.8 billion this year. Europe's top carmaker has had to trim its outlook three times in 2025, firstly to absorb the impact of US President Donald Trump's trade war and more recently following a course correction at Porsche, which also slid deep into the red in the third quarter. Volkswagen CEO Oliver Blume also serves as CEO of Porsche, but he will hand over the reins at the luxury brand at the turn of the year, keeping his job at the helm of the parent company only. Investors had increasingly called into question his ability to lead the two companies at a time of major challenges for both.