Volkswagen reported a 1.3-billion-euro (US$1.5-billion) first-half hit from tariffs and cut its full-year sales and profit margin forecasts in the German carmaker’s first assessment of the damage from U.S. President Donald Trump’s trade war.
Global automakers have booked billions of dollars of losses and some have issued profit warnings due to U.S. import tariffs.
The European industry is also facing stiffening competition from China, and domestic regulations aimed at speeding up the electric vehicle transition.
Volkswagen, Europe’s biggest carmaker, now expects this year’s operating profit margin between four and five per cent, compared with a previous forecast of 5.5 to 6.5 per cent. Full-year sales, earlier seen up to five per cent higher, are expected to be level with the previous year.
Volkswagen shares dropped by as much as 4.6 per cent in early Friday trade, before recovering as the day progressed. They were one per cent higher at 13:05 GMT.
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