2025 was a record-breaking negative year for German car manufacturers. In addition to tariffs imposed by US President Donald Trump, companies faced billions in costs due to strategic restructuring.
Porsche was hit particularly hard. Rather than sticking exclusively to fully electric models — which fell short of sales expectations — the carmaker is now shifting back to developing new combustion-engine vehicles.
The roughly €3.9 billion ($4.5 billion) cost of this pivot, combined with tariffs, almost entirely erased last year's profits.
Volkswagen and Mercedes-Benz also saw revenues stagnate in 2025, while profits dropped sharply. BMW was a notable exception. While profits at Volkswagen and Mercedes were nearly cut in half, BMW fared significantly better, with a decline in net margin of only about 3%.Bleak mood in German car industry
Overall, German car companies earned nearly 44% less in 2025 than in 2024.
