WOLFSBURG, Germany, March 10, 2026 (BSS/AFP) - Volkswagen said Tuesday that earnings after tax fell about 44 percent last year as US tariffs, fierce competition in China and a costly revamp of its sportscar-maker Porsche all weighed on performance.

Earnings after tax in 2025 came in at 6.9 billion euros ($8 billion), the German giant said, the lowest since 2016, when the 10-brand group took billions in one-off charges due to recalls and legal troubles over cheating on diesel emissions tests.

Warning that the group's profit margin was "not sufficient in the long run", Volkswagen finance boss Arno Antlitz said further cost-cutting measures could lie ahead to make the firm more competitive.

"We can only realise this if we continue to rigorously reduce costs," he said. "That is what we will focus on in the coming months."

Even before US President Donald Trump slapped tariffs on non-American carmakers last year, Europe's largest automobile manufacturer was facing a triple whammy of cratering sales in China, stagnant demand in Europe and the costs of investing in electric cars despite patchy demand.

Volkswagen struck a deal with unions at the end of 2024 to cut 35,000 jobs by 2030, mostly at its namesake brand, as part of wider plans to save 15 billion euros a year.