# Volkswagen profits fall 14% in the first quarter

By Susannah Streeter — 2026-04-30

Susannah Streeter, chief investment strategist at Wealth Club, said: “Volkswagen was facing a collision of problems, even before the current energy crisis hit. Trump’s tariffs have had a damaging effect on sales, while cheap Chinese rivals have bitten hard into its EV business.

“Its first quarter results came with a big ouch, showing a 14% drop in profits. Now management has to steer the company through higher production costs, with energy prices soaring. It’s revved up a cost-cutting plan to become a leaner machine and is counting on its brand power in an aggressive product push in key markets, including China.

“With drivers’ budgets squeezed by the current crisis, upgrades are going to be a hard sell, but as fossil fuel prices stay elevated, it could prompt motorists to switch to EVs to save on the costs of filling up.”

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