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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.

Global Investment Migration: Leading Residence And Citizenship Programs For 2026

European Dominance Challenged By Global Contenders

The 2026 edition of the Henley & Partners Residence and Citizenship Programs report shows increasing competition in the investment migration market. European programs, traditionally seen as the global benchmark, are now facing stronger competition from jurisdictions in the Middle East, Asia-Pacific, Latin America, and the Caribbean as countries expand offerings aimed at attracting capital and internationally mobile investors.

New Entrants And Rapid Climbers Reshape The Landscape

Malta remains ranked first in the Global Citizenship Program Index for the 11th consecutive year, while Greece retains the top position in the Global Residence Program Index. At the same time, several jurisdictions improved their standings. The UAE moved from fifth to a joint second position, entering the top three for the first time. Countries including Costa Rica, New Zealand, Panama, and Singapore also gained ground, while Uruguay, Saudi Arabia, and the Maldives appeared as new entrants.

Competing For Capital And Global Talent

Governments increasingly use residence and citizenship frameworks as tools to attract foreign investment and entrepreneurial talent. According to Henley & Partners Chairman Dr. Christian H. Kaelin, Europe remains a strong player, but countries such as Singapore and the UAE are accelerating reforms to strengthen their appeal to globally mobile investors.

Established Leaders And Agile Newcomers In Citizenship Programs

The Global Citizenship Program Index continues to be led by established programs. Malta’s citizenship-by-merit framework scored 77 points, maintaining its leading position, while Austria followed with a highly selective model. Programs in Grenada, St. Kitts and Nevis, and Nauru also received strong rankings. New entrants such as São Tomé and Príncipe and Samoa reflect a broader expansion of citizenship-based offerings.

European Consolidation And Emerging Residence Hubs

In the residence category, Greece remains first, supported by EU access and lifestyle advantages. Italy, Switzerland, and the UAE continue to compete closely, combining tax efficiency with investor-oriented policies. Portugal and Australia maintain strong positions, while Uruguay is emerging as a stable option with growing international interest.

Performance Metrics And Strategic Advantages

Both indexes evaluate 40 programs across factors including reputation, quality of life, compliance standards, investment requirements, and tax considerations. Austria and Malta scored strongly on program quality, while the UAE ranked highly in lifestyle and tax competitiveness. The rankings highlight how jurisdictions are positioning themselves to attract globally mobile capital.

Wealth On The Move

The report points to a broader shift in global wealth mobility. According to Dominic Volek, Group Head of Private Clients at Henley & Partners, investors increasingly prioritize stability, transparency, and clear long-term pathways when choosing residence or citizenship options.

As global uncertainty persists, residence and citizenship programs are increasingly viewed not only as investment tools but as strategic instruments for long-term mobility and risk diversification.

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