Volkswagen Says Tariffs Will Dampen Business As Profit Plunges

Volkswagen's net profit fell 40.6 percent in the first three months of the year to hit 2.19 billion euros ($2.49 billion) (Credit: AFP)

Europe's largest carmaker Volkswagen said Wednesday that first quarter profit plunged due to higher costs as it warned of muted business for the rest of the year in the wake of trade tensions.

Net profit fell 40.6 percent in the first three months of the year to hit 2.19 billion euros ($2.49 billion) even as revenue rose three percent to reach 77.56 billion euros.