Volkswagen’s first-quarter profit drop spurs further cuts

BERLIN, April 30 (Reuters) – Volkswagen must fundamentally overhaul its business as tariffs, geopolitical shocks and weak car demand batter the industry, the automaker said ​on Thursday, with a sharp first-quarter profit drop underscoring the ​urgency.

“In this environment, the cost-cutting measures planned so far ⁠are not enough,” finance chief Arno Antlitz said as the ​company presented quarterly results, calling for further steps to secure ​the German group’s future.

Volkswagen reported an unexpected 14% fall in first-quarter operating profit to 2.5 billion euros ($2.9 billion). Analysts had expected profit to be broadly ​flat, according to a Visible Alpha poll.

The group, which includes ​Porsche and Audi, has been hit by steep U.S. tariffs expected to cost ‌about ⁠4 billion euros a year, and is battling to arrest sliding sales in China and the U.S.

Around 50,000 jobs are already to be cut across the group in Germany by 2030.

The Wolfsburg-based ​company posted quarterly ​revenue of ⁠75.7 billion euros, down 2.5% and below analysts’ estimate for 77.6 billion euros.

That translated into an ​operating margin of 3.3%. Volkswagen forecasts an operating ​margin of ⁠between 4 and 5.5% in 2026, after 2.8% in 2025.

The group confirmed its full-year guidance but warned that it does not factor ⁠in ​a potential escalation in the Middle ​East conflict, which could hit demand and drive up raw material costs globally.