>Volkswagen Group profits slumped by almost half in 2025. Trade conflicts, difficulties in China and the change in strategy at Porsche are putting Europe’s largest car manufacturer under pressure.
>The Volkswagen group had a bruising year in profits and plans to cut 50,000 jobs in Germany by 2030 — a dramatic escalation of its cost-cutting programme after net profit slumped 44% to €6.9bn in 2025, the carmaker’s worst result since the diesel emissions scandal nearly a decade ago.
>The announcement, made by chief executive Oliver Blume in Wolfsburg on Tuesday, goes well beyond the 35,000 job reduction the group had already agreed with trade unions at the end of 2024.
>Revenue stagnated at around €322bn, while operating profit almost halved to around €8.9bn, according to Europe’s largest carmaker.
>Chief financial officer Arno Antlitz cited a “challenging environment” of geopolitical tensions, new trade barriers and intensifying competition, particularly from China.
>Volkswagen shares rose nearly 3.7% in Frankfurt on Tuesday morning, lifted by the broader market rally that followed Donald Trump’s comments on Iran sanctions and a potential end to the conflict.
>In 2015, Volkswagen was found to have installed software in millions of diesel vehicles designed to cheat emissions tests, making cars appear far cleaner than they were during testing — a scandal that wiped billions from the company’s market value, triggered criminal prosecutions and cost the group upwards of €30bn in fines, settlements and recalls worldwide.
>The current predicament is considered to be more damaging than the 2015 scandal.
Problems in China and the US
>Although Volkswagen grew in Europe, this was not enough to compensate for declines in China and North America. The Group delivered around 8.98 million vehicles worldwide in 2025 — a decrease of 0.5%.
>Trump’s tariffs hit the US market for Volkswagen cars particularly hard, while changes to environmental regulations and the withdrawal of government subsidies have cooled demand for electric vehicles — putting pressure on planned projects including a new plant for electric pick-up trucks under the group’s Scout brand.
>The squeeze is equally acute in China, long Volkswagen’s most important growth market, where local manufacturers including BYD, Geely and Nio are closing the technological gap and gaining market share.
>In response, Volkswagen is doubling down on an “in China for China” strategy with local development and local supply chains, which analysts consider crucial to the group’s long-term prospects.
>The pain has been felt most acutely at Porsche.
>The sports car brand suffered a sharp drop in Chinese sales while absorbing the costs of a strategic reversal.
>Having long prioritised electric vehicles, Porsche is now pivoting back toward combustion engine models.
Inflated pay bonuses?
>Operating profit collapsed from around €5.3bn in 2024 to just €90m last year.
>The earnings collapse has not, however, dented executive pay and that is causing anger.
>Despite the group’s worst results in nearly a decade, members of the Volkswagen executive board are again receiving bonuses totalling millions, driven largely by net cash flow — the cash remaining after investments and running costs — which hit €6.4bn, the highest target level in the remuneration system.
>According to media reports, total bonus payments to the management board came to around €13.6m.
>Chief executive Oliver Blume received total remuneration of around €7.4m — slightly less than the previous year, partly due to a voluntary pay waiver.
>Employee representatives are now demanding that the workforce share in the strong cash flow, with talks over possible special payments under way.
Hope for recovery in 2026
>Despite the weak annual results, the Group has recently been somewhat more stable.
>In the final quarter, business developed better than before. Volkswagen had previously reported a loss of more than €1bn in the third quarter due to special charges at Porsche.
>The Group now expects profitability to improve again in 2026. The operating margin is expected to rise to between 4.0 and 5.5%, after falling to 2.8% in 2025.
Felix-LMFAO on
>Although Volkswagen grew in Europe, this was not enough to compensate for declines in China and North America.
At least they grew in Europe. This is why it’s important to have a big regional market and proves that the EU is not being profited only by countries receiving funds.
I really hope all those people find another job.
medievalvelocipede on
Did they fire any in management? No? Then they still have the problem.
weirdowerdo on
So tell me if Im correct… VW is still making billions in profits but because the profit is less then before they’ll make 50 000 people unemployed, which will also affect their ability to produce cars and as much profit as today to achieve what exactly? They’re just downsizing their capabilities?
Lysek8 on
Time to bail them out for their incompetency while we put tariffs on better companies
KikKikKik36 on
Volkswagen cars are utterly expensive, cheaper brands of the group (Seat, Cupra, Skoda) still get by, but chinese automakers are going to have a great time in Europe.
Nice_Combination1327 on
How did European car manufacturers go from being the crown jewel of Europe to not being able to compete with China and Asia
xiaopewpew on
It is fascinating how the EU obsesses so much over what can be sold as champaign and which places can produce types of cured meat.
When it comes to technology, oh well lets just buy everything Chinese and sell all companies to China
MalaMadre211 on
The layoffs situation looks like an old heavyweight champion fighting in lead boots. VW is getting battered by young hyper-automated Chinese competitors while bleeding from aging plants, crushing EU regulations, ETS carbon taxes, crippling electricity costs, and grid interruptions. Those 50,000 layoffs VW just announced could have been entirely avoided if Merkel hadn’t pulled the plug on nuclear energy and forced a “green” transition that sent industrial costs into orbit
maximus_danus on
“Volkswagen shares rose nearly 3.7% in Frankfurt on Tuesday morning…”
Seems to be a pattern these days with companies.
Mumpitzjaeger on
Well, I’m glad they found the 50,000 responsible for the profit collapse. /s
yourfriendlyreminder on
I remember when people here unironically argued that VW’s unions are what made them so competitive.
Turns out it was a combination of cheap Russian energy and access to the Chinese market.
bluntpointsharpie on
Quit making shit cars then overcharging us for them. I had a 1982 VW rabbit that had a 4 cyl Audi engine and a 5 speed manual transmission. It ran like a rocket and got 35 mpg. It had no frills, and was simple to work on. Think about it.
13 commenti
Article
>Volkswagen Group profits slumped by almost half in 2025. Trade conflicts, difficulties in China and the change in strategy at Porsche are putting Europe’s largest car manufacturer under pressure.
>The Volkswagen group had a bruising year in profits and plans to cut 50,000 jobs in Germany by 2030 — a dramatic escalation of its cost-cutting programme after net profit slumped 44% to €6.9bn in 2025, the carmaker’s worst result since the diesel emissions scandal nearly a decade ago.
>The announcement, made by chief executive Oliver Blume in Wolfsburg on Tuesday, goes well beyond the 35,000 job reduction the group had already agreed with trade unions at the end of 2024.
>Revenue stagnated at around €322bn, while operating profit almost halved to around €8.9bn, according to Europe’s largest carmaker.
>Chief financial officer Arno Antlitz cited a “challenging environment” of geopolitical tensions, new trade barriers and intensifying competition, particularly from China.
>Volkswagen shares rose nearly 3.7% in Frankfurt on Tuesday morning, lifted by the broader market rally that followed Donald Trump’s comments on Iran sanctions and a potential end to the conflict.
>In 2015, Volkswagen was found to have installed software in millions of diesel vehicles designed to cheat emissions tests, making cars appear far cleaner than they were during testing — a scandal that wiped billions from the company’s market value, triggered criminal prosecutions and cost the group upwards of €30bn in fines, settlements and recalls worldwide.
>The current predicament is considered to be more damaging than the 2015 scandal.
Problems in China and the US
>Although Volkswagen grew in Europe, this was not enough to compensate for declines in China and North America. The Group delivered around 8.98 million vehicles worldwide in 2025 — a decrease of 0.5%.
>Trump’s tariffs hit the US market for Volkswagen cars particularly hard, while changes to environmental regulations and the withdrawal of government subsidies have cooled demand for electric vehicles — putting pressure on planned projects including a new plant for electric pick-up trucks under the group’s Scout brand.
>The squeeze is equally acute in China, long Volkswagen’s most important growth market, where local manufacturers including BYD, Geely and Nio are closing the technological gap and gaining market share.
>In response, Volkswagen is doubling down on an “in China for China” strategy with local development and local supply chains, which analysts consider crucial to the group’s long-term prospects.
>The pain has been felt most acutely at Porsche.
>The sports car brand suffered a sharp drop in Chinese sales while absorbing the costs of a strategic reversal.
>Having long prioritised electric vehicles, Porsche is now pivoting back toward combustion engine models.
Inflated pay bonuses?
>Operating profit collapsed from around €5.3bn in 2024 to just €90m last year.
>The earnings collapse has not, however, dented executive pay and that is causing anger.
>Despite the group’s worst results in nearly a decade, members of the Volkswagen executive board are again receiving bonuses totalling millions, driven largely by net cash flow — the cash remaining after investments and running costs — which hit €6.4bn, the highest target level in the remuneration system.
>According to media reports, total bonus payments to the management board came to around €13.6m.
>Chief executive Oliver Blume received total remuneration of around €7.4m — slightly less than the previous year, partly due to a voluntary pay waiver.
>Employee representatives are now demanding that the workforce share in the strong cash flow, with talks over possible special payments under way.
Hope for recovery in 2026
>Despite the weak annual results, the Group has recently been somewhat more stable.
>In the final quarter, business developed better than before. Volkswagen had previously reported a loss of more than €1bn in the third quarter due to special charges at Porsche.
>The Group now expects profitability to improve again in 2026. The operating margin is expected to rise to between 4.0 and 5.5%, after falling to 2.8% in 2025.
>Although Volkswagen grew in Europe, this was not enough to compensate for declines in China and North America.
At least they grew in Europe. This is why it’s important to have a big regional market and proves that the EU is not being profited only by countries receiving funds.
I really hope all those people find another job.
Did they fire any in management? No? Then they still have the problem.
So tell me if Im correct… VW is still making billions in profits but because the profit is less then before they’ll make 50 000 people unemployed, which will also affect their ability to produce cars and as much profit as today to achieve what exactly? They’re just downsizing their capabilities?
Time to bail them out for their incompetency while we put tariffs on better companies
Volkswagen cars are utterly expensive, cheaper brands of the group (Seat, Cupra, Skoda) still get by, but chinese automakers are going to have a great time in Europe.
How did European car manufacturers go from being the crown jewel of Europe to not being able to compete with China and Asia
It is fascinating how the EU obsesses so much over what can be sold as champaign and which places can produce types of cured meat.
When it comes to technology, oh well lets just buy everything Chinese and sell all companies to China
The layoffs situation looks like an old heavyweight champion fighting in lead boots. VW is getting battered by young hyper-automated Chinese competitors while bleeding from aging plants, crushing EU regulations, ETS carbon taxes, crippling electricity costs, and grid interruptions. Those 50,000 layoffs VW just announced could have been entirely avoided if Merkel hadn’t pulled the plug on nuclear energy and forced a “green” transition that sent industrial costs into orbit
“Volkswagen shares rose nearly 3.7% in Frankfurt on Tuesday morning…”
Seems to be a pattern these days with companies.
Well, I’m glad they found the 50,000 responsible for the profit collapse. /s
I remember when people here unironically argued that VW’s unions are what made them so competitive.
Turns out it was a combination of cheap Russian energy and access to the Chinese market.
Quit making shit cars then overcharging us for them. I had a 1982 VW rabbit that had a 4 cyl Audi engine and a 5 speed manual transmission. It ran like a rocket and got 35 mpg. It had no frills, and was simple to work on. Think about it.