Volkswagen AG expects profitability to remain roughly flat this year as the German automaker contends with muted demand in Europe and worsening trade conflicts.The manufacturer is projecting an operating margin of 5.

Volkswagen, Europe's top carmaker, forecast another challenging year of ramping up EV sales, cutting costs, and navigating trade tensions as it seeks to streamline its operations in Europe and catch up with cheaper and faster rivals in China.

Volkswagen AG concluded 2024 with lower operating results but slightly increased sales revenue. The carmaker presented its plans to navigate the challenges coming from the US and China, but they haven’t factored in tariffs for 2025.

Volkswagen AG expects to maintain profitability this year even as the automaker contends with muted demand in Europe and worsening trade conflicts.

Volkswagen, Europe's top carmaker, expects an operating margin of 5.5-6.5% in 2025, from 5.9% in 2024, it said, joining rivals in giving a muted outlook for the year ahead as the sector battles weak demand,