A Volkswagen (VW) Passat R and a Golf GTI are pictured within the tower storage facility of German carmaker Volkswagen on the firm’s headquarters plant in Wolfsburg, central Germany, on March 11, 2025. (Photograph by Ronny HARTMANN / AFP)
Wolfsburg, Germany — Volkswagen mentioned Tuesday its income nosedived in 2024 amid excessive prices and fierce Chinese language competitors because the German carmaker equipped for one more difficult 12 months navigating an trade transition and world commerce tensions.
At 12.4 billion euros ($13.4 billion) in 2024, internet revenue for Europe’s largest automaker fell over 30 % in contrast with the earlier 12 months, at the same time as general gross sales grew barely to succeed in 324.7 billion euros.
The ten-brand group mentioned its earnings final 12 months had been hit by excessive prices because it faces a stuttering shift to electrical autos, weak demand in Europe and fierce competitors from native rivals in key market China.
READ: Volkswagen deliveries fall in 2024 amid China woes
The producer, whose fashions vary from Audi to Seat and Skoda, had a very tough 2024 marked by a protracted dispute with unions that ended with a deal in December to chop 35,000 jobs in Germany by 2030.
The carmaker finally determined in opposition to closing factories at house for the primary time ever, however its issues however highlighted a broader disaster buffeting Europe’s ailing auto trade because it struggles to maintain tempo with speedy modifications.
Because it seeks to plot a approach ahead, finance chief Arno Antlitz vowed Volkswagen would deal with “constantly lowering prices and rising profitability”.
“We have to construct extra automobiles with fewer individuals,” he added.
China troubles
Highlighting Volkswagen’s difficulties, its deliveries final 12 months to China — its single largest nationwide market — fell virtually 10 %, at the same time as they had been flat or rose in the remainder of the world.
The weak spot in China was behind an general 3.5-percent drop in unit gross sales, with Volkswagen solely shifting round 9 million autos worldwide final 12 months.
Antlitz however mentioned he believed that restoration in China, the place VW has been shedding market share to native rivals like electrical carmaker BYD, is likely to be in sight
“We wish to combat again in and begin gaining market share in China by 2026 on the newest,” he mentioned.
For 2025, the group expects income to develop by as much as 5 % and is forecasting a revenue margin of between 5.5 and 6.5 %.
On the higher finish, this might be higher than the determine for final 12 months, however nonetheless beneath the seven % it achieved in 2023.
Volkswagen’s shares jumped over three % in Frankfurt instantly after the outcomes had been introduced, with analyst Pal Skirta of German financial institution Metzler saying the “optimistic” outlook had pushed them greater.
However in afternoon commerce they pulled again and had been buying and selling barely within the crimson.
Trump troubles
The carmaker additionally warned that 2025 may very well be marked by challenges arising “from an surroundings characterised by political uncertainty, rising commerce restrictions and geopolitical tensions”.
US President Donald Trump has upended world commerce by unleashing a collection of tariffs and threats focusing on US allies and adversaries.
Volkswagen CEO Oliver Blume instructed reporters that he hoped the corporate’s footprint in the USA — the place it employs tens of 1000’s — may assist it make the argument for a “truthful compromise” on tariffs levied on Mexico and Canada, the place carmakers’ supply components.
Trump final week hit all imports from Canada and Mexico with tariffs however then granted an exemption to most auto imports after an outcry from US automakers.
“The US automotive trade has very sturdy, deep integration in Canada specifically, but in addition in Mexico,” he mentioned.
“We’re relying on the sturdy funding footprint we have now within the USA, together with future plans,” he added.
He additionally welcomed a proposal final week by the European Fee to offer carmakers extra time to fulfill robust emissions reductions targets.
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“Individuals have carried out a actuality examine. The ramp-up of electromobility has not developed as shortly as was assumed years in the past,” he mentioned.
