Volkswagen reported an operating loss of 1.3 billion euros in the third quarter of 2025, according to a balance sheet released last Thursday (30).
According to The New York Times, the drop was much larger than expected for the period, especially considering the 2.8 billion euros profit recorded by the company in the same period last year.
According to Volkswagen, Donald Trump’s tariffs caused a 5 billion euro increase in the company’s costs, forcing the German automaker to look for ways to cut expenses.
VW said that all of its brands are facing “a difficult period,” but it remains on track to meet its financial targets for the year, provided it can secure the semiconductor chips needed to power its vehicles.
However, this does not seem to be an easy task, considering the stalemate between the United States and China over Nexperia, a Dutch company that manufactures basic microchips used by Volkswagen for systems such as windshield wipers, turn signals, and warning lights.
Although Nexperia is based in the Netherlands, it is owned by the Chinese company Wingtech. Last month, the Dutch government took steps to take control of the company. In response, Beijing suspended all Nexperia chip exports, more than half of which are assembled in China.
If the dispute is not resolved, it could result in further losses for both Volkswagen and other European automakers that also use Nexperia chips in their cars.
In addition to tariffs and the chip manufacturing and export deadlock, Porsche‘s strategy shift, which stopped prioritizing full vehicle electrification, still cost Volkswagen 4.7 billion euros in charges during the first nine months of the year.
Moreover, VW’s subsidiary is cutting nearly four thousand jobs this year, with more layoffs expected by the end of the year when Porsche returns to using combustion engines.
Photo: Unsplash. This content was created with the help of AI and reviewed by the editorial team.
