Volkswagen posted a 15% decline in annual operating profit for 2024, citing rising costs and restructuring-related expenses. Despite a slight increase in revenue to €324.7 billion ($352.8 billion), vehicle sales dropped 3.5% for the year. The company expects revenue growth of up to 5% in 2025 and projects an operating margin between 5.5% and 6.5%.
The automaker proposed a 30% dividend cut and reported a 10.5% decline in net liquidity to €36 billion, with expectations of maintaining a stable financial position. CFO Arno Antlitz acknowledged the challenges but emphasized Volkswagen’s commitment to maintaining its market share in Europe, sustaining its position in China, and expanding in the U.S. The company also faces potential headwinds from geopolitical tensions, trade restrictions, and emissions regulations.
While Volkswagen remains cautious about U.S. trade policies under President Donald Trump, it highlighted its strong American presence, including major operations in Tennessee and South Carolina. Antlitz stressed the need to balance investments in EVs, digitalization, and software while keeping combustion engine models competitive. The company expects these strategic moves to weigh on 2025 profits but provide long-term benefits by 2026 and beyond.
