2 weeks ago
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GlobalData
Fri, Apr 11, 2025, 9:42 AM 2 min read
In This Article:
Volkswagen's first-quarter net person been importantly impacted by the costs associated with EU c emissions penalties, resulting successful a astir 40% driblet from marketplace expectations, reported Reuters.
The European carmaker is grappling with the fiscal repercussions of not gathering the EU's stringent c emissions targets, alongside the persistent effects of US tariffs connected car imports.
Despite these challenges, Volkswagen shares experienced an 8% increase, buoyed by a impermanent 90-day halt to caller tariffs announced by the US administration.
However, a 25% tariff connected car imports continues to unreality the outlook for the company, which has sizeable vulnerability owed to its reliance connected vehicles manufactured successful Mexico and the deficiency of a US manufacturing basal for its Audi and Porsche brands.
In effect to manufacture pressure, the European Commission has proposed amendments to the existent regulations, perchance allowing car manufacturers much clip to summation income of low-emission electrical vehicles.
In response, Volkswagen has acceptable speech €600m for imaginable fines successful its first-quarter report, on with €200m for restructuring its bundle unit, Cariad, which is presently laying disconnected staff.
The institution has maintained its full-year income maturation forecast of up to 5% but has noted that these projections bash not relationship for the imaginable interaction of tariffs.
Audi, portion of the Volkswagen Group, has ceased the organisation of its vehicles astatine US ports pursuing the enforcement of a 25% tariff by the US government.
This suspension affects cars that person arrived successful the US post-2 April and has besides led to a intermission successful deliveries to dealerships of vehicles taxable to the caller US tariffs.
Automobile Manufacturers’ Association manager wide Sigrid de Vries said: “The ongoing volatility of planetary markets is lone expanding commercialized barriers and costs for businesses. Tariffs bash thing but rise prices for consumers crossed Europe, the United States, and the wider world.”
"Volkswagen deed by EU c emissions penalties" was primitively created and published by Just Auto, a GlobalData owned brand.
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