BERLIN, April 30 (Reuters) – Volkswagen on Thursday reported an unexpected 14% decline in operating profit at the start of the year as it faces tariff pressures, geopolitical uncertainty and stiff competition from Chinese brands.
The German auto group, which includes subsidiaries Porsche and Audi, reported first-quarter operating profit of 2.5 billion euros ($2.9 billion).
Analysts had expected profit to remain largely flat at 2.9 billion euros, according to a poll conducted by Visible Alpha.
Volkswagen CEO Oliver Blume has pledged further belt-tightening across the company, which has absorbed billions in tariff costs while battling weak demand in China and the U.S.
Around 50,000 jobs are 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 lower than analyst estimates for 77.6 billion euros.
This made for an operating margin of 3.3% in the first quarter. The company forecasts an operating margin of between 4 and 5.5% in 2026, after 2.8% in 2025.
($1 = 0.8576 euros)
(Reporting by Rachel More, editing by Kirsti Knolle)
