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Volkswagen Faces A 37% Drop In Quarterly Profit Amidst Tariff Pressures

The automotive world is abuzz as Volkswagen, the German powerhouse, reports a significant slump in its first-quarter profits, battling the ongoing U.S. tariffs impacting the global car industry.

Volkswagen’s operating profit fell to 2.9 billion euros ($3.3 billion), down 37% compared to last year. However, the company saw a slight increase in sales revenue, up 2.8% to 77.6 billion euros, bolstered by robust vehicle sales in non-Chinese markets. Revenue growth highlights the positive turn, but challenges persist as the company previously warned of operating profit impacts due to special effects.

Strategic Adjustments in a Volatile Market

Arno Antlitz, Volkswagen’s CFO and COO, emphasized a strategic focus on cost competitiveness alongside its extensive product lineup. The aim is to thrive even amidst the rapidly changing global landscape.

Key Q1 Highlights

  • Vehicle sales hit 2.1 million, marking a 0.9% year-on-year increase.
  • Western Europe reported a 29% surge in vehicle orders.
  • Net cash flow improved to -0.8 billion euros.

Looking forward, Volkswagen warns of challenging conditions due to political and trade uncertainties. Despite this, there’s an air of optimism as the industry adapts to new constraints.

Global Tariff Uncertainty Looms

The volatile landscape continues, with recent U.S. tariff alterations unsettling auto manufacturers. President Trump’s recent executive order aims to reduce cumulative tariffs, potentially easing some pressures. However, additional tariffs on auto parts pose ongoing challenges, adding layers of complexity to global supply chains.

Esports Must Put Children’s Rights Ahead Of Competitive Ambitions, Report Says

Competitive gaming can help children build skills, find community and pursue achievement. However, as esports grows, young players face health, psychological and online safety risks, often without consistent safeguards, according to a new report from Save the Children.

The report, Protecting Child Rights in Esports, estimates that up to 300 million children worldwide participate in esports. It calls on the industry to prioritise the rights set out in the United Nations Convention on the Rights of the Child over competitive ambitions.

Potential risks include disrupted sleep, musculoskeletal pain, anxiety, depression, sexism and online harassment. Intensive training can also leave less time for education, family and friends.

“Esports offers exciting opportunities for children, but participation should never come at the expense of their rights, wellbeing or development,” said Theo Toresson, a psychologist and gaming expert at Save the Children.

Children must be treated “as children first and competitors second”, he added, calling for their involvement in decisions that affect them.

Training Standards Remain Uneven

The report highlights the lack of widely established standards for training hours and methods. Extended periods of sitting, insufficient breaks and schedules that interfere with sleep, exercise and schoolwork can affect young players’ health and development.

Poor posture and long sessions may also cause neck, shoulder and wrist pain, while late-night gaming can undermine sleep, concentration and mood.

Although some organisations provide guidance on breaks, nutrition, sleep and hydration, a representative of a national esports federation told the report that this advice often draws on separate studies rather than a centralised set of guidelines.

The report also notes positive findings: many professional esports players report satisfactory levels of physical activity, and higher-ranking players often place greater emphasis on fitness.

Online Harassment Adds To Mental Health Risks

Gaming communities and livestreaming platforms can help young players build connections and public profiles, but they may also expose them to cyberbullying, discrimination and privacy violations.

An analysis cited in the report examined chatrooms across 302 gameplay segments involving the 20 most popular Twitch streamers. It found sexist language in 62% of streams, racist language in 37%, ableist language in 84% and violent language in 97%.

Some esports federations and teams require staff to receive mental health first-aid training, but the practice remains uncommon. Young competitors may also face public scrutiny through livestreams, interviews and social media before they have the support to manage it.

Safeguards Must Extend Beyond Gameplay

The report raises further concerns about unequal participation linked to gender, race, LGBTQIA+ identity and disability. It also highlights children’s limited involvement in decisions affecting them and the risk of economic exploitation by teams, agents or parents, particularly where contracts lack transparency.

Inadequate supervision at live events presents additional risks.

Save the Children argues that protecting young competitors requires more than advice on posture and screen breaks. Clear standards, responsible oversight and age-appropriate safeguards are needed to ensure esports supports children’s development rather than putting it at risk.

As competitive gaming expands, the industry faces growing pressure to make children’s rights and wellbeing part of its operating standards.

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