Lagging in electric mobility and facing saturated or wary markets, high costs, fierce Chinese competition, and harsh US tariffs, the German automotive industry continues to struggle. Despite a clear recovery in European sales, the electric segment remains a drain on investment without yielding significant profits. Consequently, the Spring announcements regarding 2025 financial results are poor.
Employment impacted by plunging financial results
The Volkswagen Group’s net profit fell by 44% in 2025. Most notably, the Porsche brand saw its operating profit plummet from €5.3 billion in 2024 to just €90 million. Mercedes-Benz reported a 48.8% drop in its 2025 results, while Bosch recorded a 45% decline.
As a Berlin correspondent for the French and Swiss press since the late 1990s, I cover a wide range of economic, political and social issues, with a particular focus on the German business and labour market. My areas of interest include co-determination, digitalisation, demographics and ESG/DEI policies.