Volkswagen's Profits Plunge Amid Rising Costs and China Competition

Volkswagen's net profit decreased by 30.6% to €12.4 billion in 2024, despite a slight increase in sales to €324.7 billion. The decline is attributed to increased fixed costs and restructuring expenses. The company faces challenges including a difficult transition to electric vehicles and strong competition from Chinese rivals. Deliveries to China fell almost 10%. Volkswagen plans to reduce costs and increase profitability, aiming for a margin between 5.5% and 6.5% in 2025. Challenges include political uncertainty and trade restrictions.