Volkswagen’s income fell by 28 % | EUROtoday

As of: April 30, 2026 • 9:23 a.m

US tariffs, low gross sales figures and weak outcomes at Porsche and the truck subsidiary Traton have precipitated Volkswagen to undergo a pointy drop in income. Europe’s largest automobile producer now needs to tighten its austerity program.

The Volkswagen Group began the 12 months with one other decline in income. In the months from January to March, group earnings after taxes fell by 28.4 % to 1.56 billion euros, VW introduced. In the primary quarter of 2025, the Wolfsburg-based group nonetheless earned 2.19 billion euros, even when it was already 41 % lower than within the earlier 12 months.

The gross sales of Europe’s largest automobile producer have now shrunk by 2.5 % to 75.7 billion euros. And the working return on gross sales was additionally decrease than a 12 months in the past at 3.3 %. “Wars, geopolitical tensions, trade barriers, stricter regulations and tough competition are causing headwinds,” mentioned CEO Oliver Blume.

The USA and China are miserable gross sales figures

The VW Group is affected by weak gross sales figures, particularly in China and the USA. Worldwide, this lowered the variety of deliveries within the group within the months January to March to solely round two million autos of all group manufacturers, seven % lower than a 12 months earlier. Deliveries fell significantly in China and North America. Growth in Europe couldn’t compensate for this.

However, in accordance with the corporate, the group’s cost-cutting efforts had an impact. “Our cost work is bearing fruit,” mentioned Blume. “The financial result shows at the same time: In order to improve our competitiveness and sustainably strengthen it, we must consistently develop our business model.” Because the world has modified for the reason that austerity applications began in 2024, added CFO Arno Antlitz.

“Tariffs have been added, competition in China continues to intensify and Chinese suppliers are increasingly exporting competitive pressure to Europe.” The US tariffs alone “burden us with an additional burden of around four billion euros per year,” mentioned Antlitz. In this surroundings, the beforehand deliberate value reductions weren’t ample. VW needs to chop 50,000 jobs by 2030.

VW offers Business mannequin to the check

The group had already introduced at first of the week that it could additional intensify its financial savings efforts. The group should essentially change its enterprise mannequin. VW needs to handle this surroundings with its new 2030 technique and reposition itself. This consists of extra environment friendly crops, a regional focus and a discount within the variety of autos on supply.

“The Volkswagen Group has strong substance,” CEO Oliver Blume was quoted as saying. “However, we do not earn enough money from our vehicles today to sustainably finance our future.” The Supervisory Board had beforehand mentioned a report from the Executive Board on the restructuring program and the standing of financial savings efforts.

Porsche and Traton are a burden

The consolidated consequence was additionally burdened by the weak figures that Porsche offered the night earlier than. From January to March, revenue after taxes fell by nearly 1 / 4. The truck subsidiary Traton with the MAN and Scania manufacturers had already reported an enormous drop in income resulting from excessive particular results.

Last 12 months, the VW Group’s income fell by nearly half. Compared to the earlier 12 months, consolidated earnings after taxes fell by round 44 % in 2025. Sales and gross sales additionally fell. For 2026, the group is aiming for better profitability once more – with as much as three % extra gross sales.

VW shares fell by greater than two % at the beginning of buying and selling. The paper is presently at its lowest stage since April 2025.