Volkswagen AG’s namesake brand pushed back its profitability target by three years as the carmaker contends with muted sales and the costs of slimming down its bloated operations.

The German auto giant’s earnings fell last year as it pushed ahead with a restructuring in the face of tariff uncertainty in the United States and lost market share in China.

Volkswagen, Europe's top carmaker, expects at best a slight increase in its 2025 operating profit margin, it said, joining rivals in giving a subdued outlook for the year ahead as the sector battles weak demand and simmering trade tensions.