The 10-brand group said net profit from January to March plunged 28% to €1.56 billion with sales down over 2% to €76 billion.

Analysts surveyed by financial data firm FactSet had forecast net profit of €1.76 billion and revenues of €78 billion.

“Wars, geopolitical tensions, trade barriers, tighter regulation, and intense competition are creating headwinds,” said VW CEO Oliver Blume, while stressing the group had achieved “tangible progress” regardless.

But the latest results showed that to “sustainably strengthen our competitiveness, we must consistently further develop our business model,” he added.

Volkswagen, whose brands range from Audi to Seat and Skoda, said in March that it planned to cut 50,000 jobs in Germany across the group by 2030 as it seeks to reduce costs.