Struggling German auto giant Volkswagen's profits plunge

BERLIN

Volkswagen on April 30 reported another big drop in quarterly profits as the struggling German auto giant battles challenges from the US tariff blitz to fierce Chinese competition.

The 10-brand group said net profit from January to March plunged 28 percent to 1.56 billion euros ($1.8 billion) with sales down over two percent to 76 billion euros.

Analysts surveyed by financial data firm FactSet had forecast net profit of 1.76 billion euros and revenues of 78 billion euros.

"Wars, geopolitical tensions, trade barriers, tighter regulation, and intense competition are creating headwinds," said VW CEO Oliver Blume, while stressing the group had achieved "tangible progress" regardless.

But the latest results showed that to "sustainably strengthen our competitiveness, we must consistently further develop our business model," he added.

Volkswagen, whose brands range from Audi to Seat and Skoda, said in March that it planned to cut 50,000 jobs in Germany across the group by 2030 as it seeks to reduce costs.