Deportations up, Volkswagen profits down – DW – 07/25/2025

German automobile giant Volkswagen has posted a sharp drop in second-quarter profits, citing US tariffs, rising production costs and an increase in sales of electric vehicles with a smaller profit margin.

Volkswagen profits dropped to just under €2.3 billion ($2.7 billion) in the second quarter of 2025, a 36.3% decrease on same period last year.

The Wolfsburg-based concern said that its Porsche and Audi subsidiaries had performed particularly poorly and that sales in China were also down, but insisted the drop-off was largely in line with analysts’ expectations.

Chief executive Oliver Blume insisted that Volkswagen is operating in an “extremely challenging environment,” while finance director Arno Antlitz said the results were actually “at the higher end” of the company’s expectations. “But, in the end, what matters is the money which actually lands in the till,” he said.

“We’ve made tangible improvements in design, technology and quality,” added Blume. “The order books are well-stocked.”

Nevertheless, the firm says it will stick to its restructuring plans which it intends to “implement decisively and accelerate where necessary.” Volkswagen is expecting to cut 35,000 jobs by 2030.

A leading Austrian migration researcher has criticized the German government’s deportation policies, calling them a “bluff.”

“A great deal of effort is achieving very little – all while undermining EU law,” claimed Gerald Knaus, chairman of the European Stability Initiative, in the Friday edition of German finance newspaper Handelsblatt.

Knaus also defended German migration policy under former Chancellor Angela Merkel (CDU) — which has come under severe attack from Merz and his current government.

“Germany had irregular migration under control,” he claimed. “The core elements of Merkel’s policies after 2016 were correct, as shown by the sharp decrease in refugee numbers following the [2016] refugee deal between the European Union and Turkey.

Indeed, Knaus warned that the current government’s constant criticism of Merkel, who also headed up conservative-led coalitions, only serves to help the far-right.

“The CDU is running from its own history and talking down its own success,” he opined. “[Now], every time any crime is committed by a migrant, [the far-right AfD] can claim: the CDU is to blame.”

The number of deportations from Germany rose to more than 11,800 in the first half of this year, according to data released by the Interior Ministry.

The figure, provided in response to a parliamentary question from a lawmaker from the far-right Alternative for Germany (AfD) party, represents an increase of over 2,000 on the same period in 2024, during which around 9,500 deportations were carried out.

The new conservative-led German government under Chancellor Friedrich Merz (CDU) has promised a tougher approach to illegal migration, tightening border checks, clamping down on “secondary migration” within the European Union and resuming deportation flights to countries such as Afghanistan and Iraq.

Earlier this month, Interior Minister Alexander Dobrindt (CSU) joined his counterparts from Austria, Denmark, France, the Czech Republic and Poland in calling for a tougher European migration and asylum policy.

“Effective returns are essential for maintaining trust in a balanced European migration policy,” the ministers said in a joint statement.

Guten Morgen! Welcome to DW’s coverage of developments in Germany on Friday, July 25.

As the weekend approaches, we’ll keep you up to date on stories including:

• A rise in deportations from Germany
• A collapse in Volkswagen profits
• Intel abandoning plans for a factory in Magdeburg
• The soaring costs of a German air force base 

And remember: you can recap on yesterday’s Germany news here.