VW Group Admits EV Sales Are Eroding Profits Amid Tariff and China Pressures
Volkswagen Group’s nine-month results reveal that while electric vehicle (EV) demand is rising, these sales are generating significantly lower profits than combustion-engine cars. CFO Arno Antlitz confirmed that the shift to EVs is squeezing margins, exacerbated by U.S. tariffs, aggressive Chinese pricing, and a shrinking Chinese market. To address this, the group is launching a €31 billion cost-cutting program, potentially cutting up to 100,000 jobs and retiring half of its model lineup. The company faces a regulatory dilemma: it must sell more low-margin EVs to meet EU emissions targets and avoid fines, even though these vehicles hurt overall profitability.