Volkswagen Profit Plunges as Carmaker Weighs Mass Job Cuts
The automaker said weaker second-quarter results and rising tariff and competition costs are forcing a broader overhaul.
- On Friday, German automaker Volkswagen reported an operating profit of €3.5 billion for the second quarter, missing analyst expectations of €4.3 billion amid mounting market pressures.
- Volkswagen cited discontinuation of its top EVs in Tennessee and negative mix effects, compounded by billions in tariff costs and intensifying competition from Chinese brands.
- Shares of Volkswagen are down nearly 30% year-to-date, and the company now expects sales revenue to decline between 0% and 3% this year, reversing its prior growth forecast.
- CEO Oliver Blume proposed 100,000 job cuts as part of a radical restructuring, citing costs 20% higher than comparable businesses in a memo distributed earlier this month.
- Blume plans potential closure of four German factories—Hanover, Zwickau, Emden, and Audi's Neckarsulm facility—to shield the group amid "continued unavoidable headwinds in the double-digit billions.
105 Articles
105 Articles
Volkswagen is in crisis. Austria's suppliers are hard on this. Chinese producers and their orders could help. Is that possible?
VW's Profit Warning and 100,000 Job Cuts Signal Deep Turmoil for Europe's Auto Giant
Volkswagen delivered a stark warning on its outlook. The German automaker slashed its sales and delivery forecasts for 2026. It now expects revenue to fall by as much as 3%. Deliveries could drop between 3% and 7%. Just three months earlier, executives had predicted flat to modest growth. The reversal stems from one market above all. China. Deliveries there plunged roughly 37% in the second quarter. First-half sales in the country fell more than…
VW cuts the sales forecast from plus three to minus three percent. Profit breaks down by one third, China collapses. Blume's radical austerity is hit by a blockage on the Supervisory Board.
EconomyNew savings plans push VW's mood. How did it go in the first six months of the year?
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