BERLIN, Jan 21 (Reuters) - Volkswagen on Wednesday reported better-than-expected net cash flow in 2025 of 6 billion euros ($7 billion), despite Europe's largest carmaker struggling with weak China
Volkswagen Achieves Unexpected Cash Flow Growth Amid Challenges
Volkswagen's Financial Performance
BERLIN, Jan 21 (Reuters) - Volkswagen on Wednesday reported better-than-expected net cash flow in 2025 of 6 billion euros ($7 billion), despite Europe's largest carmaker struggling with weak China sales, U.S. tariff worries and difficulties at luxury sports brand Porsche.
Factors Contributing to Cash Flow
The net cash flow was 1 billion euros higher than the previous fiscal year and contrasted with the company's expectations of around zero net cash flow.
Challenges Faced by Porsche
According to a spokesperson, the higher cash flow is due to Volkswagen reducing its inventories towards the end of the year. Investments in both plants and research and development were also lower than initially anticipated.
Investment Trends in Automotive Sector
According to preliminary figures, the investment ratio in the automotive business was 12% of revenue, compared to 14.3% in 2024. Chief Financial Officer Arno Antlitz plans to further reduce investment in the coming years.
Porsche AG in September dialled back plans for its electric vehicle rollout due to weaker demand, pressure in key market China and higher U.S. tariffs, causing the sports car maker and parent Volkswagen to slash their 2025 profit outlooks.
($1 = 0.8548 euros)
(Reporting by Christina Amann and Matthias WilliamsEditing by Rod Nickel)
