Volkswagen predicts a loss of 5 billion euros in its year-end forecast.

Volkswagen Announced Third Quarter Results

Volkswagen has announced its financial results for the third quarter of 2023 and the January-September period. The company reported a loss of 1.3 billion euros in the third quarter. In the same period last year, profit was 2.83 billion euros.

Weakness in January-September Period

In the first nine months of the year, Volkswagen's profit fell by 58 percent compared to last year, dropping to 5.4 billion euros. Additionally, Porsche recorded 4.7 billion euros in additional expenses due to changes in its electric vehicle strategy.

Impact of Tariffs

The customs tariffs imposed by the United States are significantly affecting Volkswagen's costs. The company expects these tariffs to impose an additional 5 billion euros in burdens throughout 2023.

Financial Assessment

Volkswagen Chief Financial Officer Arno Antlitz stated that they are facing a complex situation regarding the nine-month financial results. Antlitz noted, "This situation is due to lower profit margins on electric vehicles and increasing tariffs."

Impact of Expenses and Strategies

Antlitz emphasized that excluding these expenses, the group's operating profit margin is 5.4 percent. "In the current economic environment, this is a respectable rate, but rising customs tariffs are creating an additional burden of 5 billion euros annually. Therefore, we must resolutely implement our performance programs and advance efficiency measures," he stated.