Volkswagen stung by nearly $1B tariff hit, projects $5.8B import tax for the year

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tariffs on imported vehicles stood at 800 billion euros ($925 million), with its total tariff blow through the first nine months of the year totaling 2.1 billion euros ($2.44 billion)."Group operating margin is 5.4 percent — at first glance a respectable figure in the current economic environment. But increased trading tariffs and the resulting negative volume effects burden us by up to 5 billion EUR ($5.8 billion) on a full-year basis," Volkswagen CFO and COO Arno Antlitz said in a statement.Antlitz said the effects and charges to units like struggling Porsche will continue to persist without new mitigation and "efficiency measures."Read more: Live coverage of corporate earningsEarlier this month, Volkswagen lowered its financial expectations for the year, guiding for a full-year operating return on sales (a measure of margin) of 2% to 3% and an automotive net cash flow of breakeven.While the Porsche charge was a big one ($5.92 billion) related to changes in its EV rollout and brand goodwill, the effects of tariffs cannot be ignored.Last year, Volkswagen's operating result (also known as EBIT — earnings before interest and taxes) stood at 21.7 billion euros ($25.10 billion), meaning $5.8 billion equates to 23% in lost profit.In the second quarter, Volkswagen's tariff exposure was higher ($1.52 billion), but that was before the US struck a trade deal with the EU, with imports tariffed at 15% starting in August. However, 27.5% tariffs are still in place for vehicles made in Mexico.Volkswagen Golf R on display in Noblesville, Ind. Volkswagen offers the Golf with a 2.0L TSI turbocharged four-cylinder engine. · jetcityimage via Getty ImagesVolkswagen said that while total deliveries in the first nine months of the year rose 1%, deliveries fell 8% in the US. The German automaker noted that while it makes 200,000 vehicles in the US, it still imports 240,000 units from Germany and 287,000 units from Mexico. VW's top seller, the Tiguan midsize crossover, is manufactured at the automaker's plant in Puebla, Mexico.Wolfsburg, Germany-based VW is in talks with the US government regarding expanding vehicle production in the US, with an Audi plant a possibility.As for VW's overall most recent results, the automaker reported Q3 revenue rose 2.3% from a year ago to 80.3 billion euros, but posted an operating loss of 1.3 billion euros versus a profit of 2.83 billion euros a year ago, with the tariffs and other one-time charges impacting its earnings.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,870.29 -20.30 (-0.29%)Dow 3047,969.34 +337.34 (+0.71%)Nasdaq23,732.80 -225.67 (-0.94%)Russell 20002,485.48 +0.67 (+0.03%)VIX17.00 +0.08 (+0.47%)Gold4,008.80 +8.10 (+0.20%)PortfolioSign in to access your portfolioSign inTop gainersGH Guardant Health, Inc. 94.83 +22.56 (+31.21%)PRM Perimeter Solutions, Inc. 27.46 +6.12 (+28.68%)GKOS Glaukos Corporation 94.60 +17.51 (+22.71%)MTSR Metsera, Inc. 64.14 +11.93 (+22.85%)FORM FormFactor, Inc. 58.20 +10.48 (+21.96%)Top losersFMC FMC Corporation 16.97 -12.07 (-41.55%)SFM Sprouts Farmers Market, Inc. 79.13 -25.42 (-24.31%)APLS Apellis Pharmaceuticals, Inc. 23.16 -6.89 (-22.95%)CMG Chipotle Mexican Grill, Inc. 33.09 -6.67 (-16.78%)BAX Baxter International Inc. 19.02 -3.40 (-15.17%)Most activeNVDA NVIDIA Corporation 203.30 -3.74 (-1.81%)CMG Chipotle Mexican Grill, Inc. 33.09 -6.67 (-16.78%)ABEV Ambev S.A. 2.2800 +0.1000 (+4.59%)META Meta Platforms, Inc. 658.82 -92.85 (-12.35%)GOOGL Alphabet Inc. 287.46 +12.89 (+4.69%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersMETA Meta Platforms, Inc. 658.68 -92.99 (-12.37%)GOOG Alphabet Inc. 288.41 +13.24 (+4.81%)CMG Chipotle Mexican Grill, Inc. 33.16 -6.60 (-16.61%)BTC-USD Bitcoin USD 108,166.23 -4,363.81 (-3.88%)GOOGL Alphabet Inc. 287.73 +13.16 (+4.79%)Top economic events