Volkswagen core brand group profit falls on EU carbon provision, US tariffs

Volkswagen on Friday said its first-quarter operating profit for the core brand group, which includes its best-selling VW brand, declined by 46.3%, impacted by EU carbon provisions and write-downs on inventory related to U.S. tariffs.

The operating profit for the core brand group fell to 1.12 billion euros ($1.27 billion) from 2.08 billion a year ago, while its VW passenger car unit saw an 84.9% drop to 112 million euros. The core brand also includes Skoda, Seat and Cupra.

In April, Volkswagen said it included a 600-million-euro provision for potential fines for missing European carbon emissions targets in its first-quarter result.