The import tariffs of the United States cost Volkswagen 1.3 billion euros. Partly due to this, the German car manufacturer saw its profit fall by more than a third.
Volkswagen’s profit fell to 4.5 billion euros in the first half of the year. In the same period last year, it was almost 7.3 billion euros. This means a decrease of 38.5 percent. The import tariffs of the US are hurting German car manufacturers a lot. But total turnover only decreased very slightly, to more than 158 billion euros.
Volkswagen, which also owns brands such as Audi, Skoda Porsche, sold 4.4 million cars. This means a small increase. The growth in sales in, among other places, South America, Western Europe and Central and Eastern Europe compensates, according to the company, for the already expected decline in China and North America.
“Our half-year figures paint a contrasting picture,” says CFO Arno Antlitz. On the one hand, according to Antlitz, the company is making progress with reorganization, on the other hand some results are falling significantly. Without the import tariffs and reorganization costs, the picture would look a lot better, according to the CFO.
Volkswagen is facing fierce competition from other car brands, especially in China, the car manufacturer reported at the beginning of this year. There, the company sold 8 percent fewer cars last year compared to the year before.
The competition in China is one of the reasons that Volkswagen has been in trouble for some time. In October, the company announced that it wanted to close three factories, but in December Volkswagen announced that those plans would not go ahead for the time being.