Key facts
- Volkswagen revised down its 2026 sales forecast to a potential 3% decline.
- The company's second-quarter operating profit fell 9.5% year-on-year to €3.5 billion.
- Group sales dropped 8.6% in the second quarter to 2.1 million vehicles.
- Sales in China alone plummeted by over one-third.
- Volkswagen plans to reduce its model lineup by up to half to improve competitiveness.
Volkswagen has revised down its sales forecast for 2026, now anticipating a decline of up to 3%, following a significant slump in its second-quarter operating profit. The German automotive group reported an operating profit of €3.5 billion for the April-to-June period, a 9.5% decrease year-on-year and below market expectations.
Group sales fell 8.6% in the second quarter to just under 2.1 million vehicles, with sales in China alone plummeting by more than one-third. The core Volkswagen brand saw deliveries drop 14%, while Audi deliveries declined 8% and Porsche deliveries fell 18%. The company cited geopolitical tensions, rising costs due to tariffs, and increasing competition, particularly in the electric vehicle market in China, as key challenges.
Following a board meeting, Volkswagen announced plans to streamline its model lineup by up to half as part of a "fundamental realignment" to make the company faster and more competitive. CEO Oliver Blume emphasized reducing complexity, focusing technologies, and improving regional market alignment. However, research firm BernsteinSG expressed skepticism regarding Volkswagen's claims of extending technology leadership, given the rapid innovation pace of Chinese competitors.
Hundreds of employees protested outside the Volkswagen plant in Zwickau, demanding job protections and opposing plans to close the site, which has fully transitioned to electric car production.