Volkswagen profit falls, revises down full-year revenue outlook
A German national flag on a barge near the Volkswagen AG factory in Wolfsburg, Germany, on Tuesday, March 10, 2026.
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volkswagen The German auto giant reported weaker-than-expected second-quarter profits on Friday, dashing hopes for sales revenue growth in 2026; The German auto giant is laying the groundwork for a radical overhaul of its business.
Europe’s largest automaker reported an operating profit of 3.5 billion euros ($3.98 billion) in the April-June period, according to a consensus compiled by LSEG; This was down nearly 10% from a year ago and below expectations of €4.3 billion.
The company also said it expects 2026 sales revenue to decline by up to 3% this year; In contrast, previous sales revenue growth was estimated to reach 3%.
The results come shortly after the company confirmed it plans to cut 100,000 jobs, twice as many as previously stated, as it aims to counter a drop in profits due to multibillion-euro tariff costs and increased competition from Chinese car brands.
One widely reported In a memo to staff earlier this month, CEO Oliver Blume said the group’s costs were 20% higher than similar businesses and so the company needed to cut costs further.
Volkswagen’s CEO reportedly said the company could not confirm alternative uses for four German factories that were previously at risk of closure. These refer to Volkswagen’s factories in Hannover, Zwickau, Emden and the group’s Audi plant in Neckarsulm.
The automaker reached an agreement with unions in late 2024 to prevent factory closures in Germany and eliminate compulsory layoffs by the end of 2030.
‘An unprecedented risk scenario’
Blume said Friday that the company has managed to offset “unavoidable ongoing headwinds” with double-digit billions.
“At the same time, the environment for the automotive industry remains extremely challenging: geopolitical crises, trade conflicts, high regulatory requirements, volatile markets and intense competition,” Blume said in a statement.
“In an unprecedented risk scenario, the Volkswagen Group is entering the next phase of its transformation from a strong position and with a clear understanding of the opportunities ahead,” he added.
Volkswagen said in April it would end production of its ID.4 electric sport utility vehicle at its Tennessee plant amid a challenging U.S. environment for EVs.
Volkswagen’s shares have lost nearly 30% of their value since the beginning of the year. Volkswagen lost 3.3% in premarket trading ahead of the open.
