Volkswagen (ETR:VOWG_p) confirmed its full-year outlook but warned that rising tariffs, political instability and global tensions could weigh on its profitability and cash generation this year.
The automaker said it expects sales to grow by as much as 5% in 2025, with an operating margin of 5.5% to 5.6%.
For its automotive division, Volkswagen is targeting net cash flow between 2 billion and 5 billion euros and net liquidity in the range of 34 billion to 37 billion euros.
However, the company noted that a range of external pressures—including tightening trade policies, heightened geopolitical risks, fluctuating exchange rates, commodity and energy price volatility, and stricter emissions standards—could push results toward the lower end of its forecast ranges.
“Given the current volatile global economic situation, it is even more important to focus on the levers within our control,” finance chief Arno Antlitz said.
The warning comes after Porsche (ETR:P911_p) Automobil Holding SE (ETR:PSHG_p), in which Volkswagen holds a majority stake, cut its own guidance earlier in the week following a sharp drop in first-quarter margins.
