Volkswagen’s profit collapses and with it grows the alarm over the group’s industrial scenario. The German car manufacturer reported quarterly profits of 1.54 billion euros, down 33%, while in the first half revenue fell by 0.2% to 158.1 billion. While positive signals come from cash generation at 3.2 billion (+1.3 billion) and an order book grown by 12% thanks to demand for electric cars, on the other hand, overall sales fell by 8.4% to 4 million vehicles and operating profit dropped by 11.6% to 5.9 billion.
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Volkswagen does not recover
What is worrying is not only the financial performance, but also the revision of the outlook. Volkswagen has indeed reduced its full-year estimates to up to 3%, against a previously expected growth of up to 3%. Cash flow is estimated between three and six billion euros, and net liquidity in the sector between 32 and 34 billion, below the 34.5 billion at the end of 2025. The results and the cut in expectations dragged down the stock: in Frankfurt, the share closed down 2.22%, at 71.46 euros, marking a -30% since the beginning of the year.
Cut plan towards approval
The economic difficulties are now intertwined with industrial restructuring and the issue of employment. CEO Oliver Blume announced the approval of the cut plan by the end of the year, with a possible reduction of up to 140,000 people. The executive openly spoke of at least 50,000 people at risk, in addition to departures already agreed with social partners. In the background also remain the pressure of the sector crisis, with declining shares even to the advantage of Chinese manufacturers, and the uncertainty related to tariffs. CFO Arno Antlitz called for a good solution on tariffs. At the end of August, management will meet with workers to discuss the plan, expected in September, while unions view it with skepticism. A works council spokesperson warns that unprecedented plant closures and job cuts do not represent a business model.
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