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VW reports loss of billions: Porsche debacle drags company into crisis!
Wolfsburg: A look at Volkswagen's current challenges in 2025 and their impact on the automotive industry.
VW reports loss of billions: Porsche debacle drags company into crisis!
There is a lot happening in the world of the automotive industry. Especially at the Volkswagen Group, which suffered a severe blow due to challenges and unforeseen developments. The board expects a massive loss on the balance sheet for the current year, especially after the serious difficulties that the Porsche brand has had to endure in recent months. Loud Mirror the loss is estimated at several billion euros. This raises a significant question mark over the future profitability of the entire group.
What exactly happened? In addition to the decline in vehicle sales in Germany and Europe, the development of the Chinese market is no longer what it once was. The Porsche and Audi brands in particular recorded massive losses in 2024. This not only significantly depressed profits, but also called into question the company's strategic plans. Volkswagen AG has responded to these circumstances and launched an extensive savings program to secure financial resources for investments in e-mobility and autonomous vehicles, such as Statista reported.
The challenges in detail
Volkswagen is under pressure right now. Car deliveries in China fell by around 10.5 percent. This decline not only impacts the balance sheet, but also trust in the brand. In addition, new car registrations in the EU show a picture of decline. In 2024, registrations were around 18.4 percent below the 2019 level. This led to operating profit being reduced to around six percent, while consolidated profit before taxes fell over 27 percent compared to the previous year.
A particularly important aspect of the austerity measures is the socially acceptable reduction of over 35,000 jobs by 2030, which focuses primarily on the core Volkswagen passenger car brand, which is heavily dependent on the Chinese market. There is definitely something in the air regarding the future of the company.
Brands in focus
Despite these difficulties, we must not forget that some brands within the group are experiencing positive developments. Skoda and Seat were able to increase their sales figures, while Scania made gains in the commercial vehicle sector. It remains to be seen how this will affect the entire group structure in the long term.