{"id":1817651,"date":"2026-03-10T12:09:12","date_gmt":"2026-03-10T09:09:12","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=1817651"},"modified":"2026-03-10T12:09:12","modified_gmt":"2026-03-10T09:09:12","slug":"germanys-porsche-pauses-shift-to-evs-as-profits-tank","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=1817651","title":{"rendered":"Germany’s Porsche pauses shift to EVs as profits tank"},"content":{"rendered":"

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Porsche’s profits evaporated almost completely in 2025 amid a costly strategic restructuringImage: Malte Ossowski\/Sven Simon\/picture alliance<\/small><\/figcaption><\/figure>\n
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Volkswagen<\/a>‘s top executives on Tuesday\u00a0said the vast automotive empire suffered a 44% reduction in net profits in 2025<\/a>, with gains after tax dropping to \u20ac6.9 billion (roughly $8 billion) from 12.4 billion in 2024.<\/p>\n

That’s the company’s worst annual overall performance since 2016, at the height of the financial fallout from the so-called “Dieselgate<\/a>” scandal.\u00a0<\/p>\n

“2025 was punctuated by geopolitical tensions, tariffs and highly intense competition,” Chief Financial Officer Arno Antlitz said in the company press release.\u00a0<\/p>\n

The VW Group is planning 50,000 job cuts across its various brands by 2030. It is struggling with falling demand and rapidly improving homemade competition\u00a0in China, as well as new tariffs in the US, by far its two biggest export markets.\u00a0<\/p>\n

Like the rest of the German car industry<\/a>, the VW Group\u00a0is also struggling with managing and judging the pace of the shift towards electric motoring. Targets and incentives often vascillate and vary by region and public demand remains lower than many politicians and industry leaders had hoped.\u00a0<\/p>\n

Nevertheless, VW CEO Oliver Blume tried to emphasize the positives, for instance pointing to comparatively strong recent performance of\u00a0VW Group shares when compared to the industry as a whole in his presentation aimed in no small part at shareholders.\u00a0<\/p>\n

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Blume sought to show shareholders that their investments were well placed, comparing 2025 share price and dividend yields to overall DAX and car industry performanceImage: Malte Ossowski\/Sven Simon\/picture alliance<\/small><\/figcaption><\/figure>\n

Porsche’s electric slowdown takes big bite out of profits<\/h2>\n

A vast chunk of this dip was attributable to VW’s performance brand and longest-standing partner Porsche, with the Stuttgart-based company’s net profits all but wiped out. The company logged a net profit of just \u20ac90 million, compared to \u20ac5.3 billion in 2024.\u00a0<\/p>\n

“The reasons for the reduction are a fundamentally changed market environment in China, the US tariffs, the slower rise of electromobility and the one-off and special effects that are connected with it,” VW wrote in the “Sport Luxury” segment of its annual report that pertains to Porsche’s performance.\u00a0<\/p>\n

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Porsche is struggling to retain relevance and market share in China, once the driving force behind its profitabilityImage: CFOTO\/picture alliance<\/small><\/figcaption><\/figure>\n

The works council said that Porsche’s decision late last year to extend its production running times for combustion engine models accounted for a one-off\u00a0financial hit in the region of \u20ac5 billion. It also said that US tariffs led to lost revenues in the region of \u20ac3 billion.\u00a0<\/p>\n

Once a major cash cow for the VW Group, Porsche has struggled in particular with the rapid advent of higher quality Chinese-made luxury and performance cars<\/a> emerging as a serious rival to its top end sales in China\u00a0faster than most in the industry anticipated.<\/p>\n

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Germany’s Porsche pauses shift to EVs as profits tank<\/h2>\n

What did the company’s other core figures look like?\u00a0<\/h2>\n

As Porsche’s balance sheet to a huge hit, other parts of the company performed better than some of 2025’s doom-laden headlines seemed to suggest, perhaps helping to explain why VW share prices jumped on Tuesday morning amid the nominally bad news.\u00a0<\/p>\n

Some of the key figures across the group’s main marques follow here:\u00a0<\/p>\n