German automakers Volkswagen and Mercedes-Benz reported steep declines in first-quarter profits for 2025, citing weakening demand in China, rising production costs, and overcapacity at European plants.
Volkswagen, which owns brands including Audi, Bugatti, Seat, Skoda, and Porsche, said its sales revenue rose 2.8% year-on-year to €77.56 billion ($88.16 billion), supported by stronger vehicle sales outside the Chinese market. However, operating profit fell to €2.87 billion, while net profit dropped 40.6% to €2.2 billion. Pre-tax profit also declined 40% to €3.1 billion.
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