Volkswagen reported an operating profit of 3.5 billion euros ($3.98 billion) for the April to June period, down nearly 10% from a year ago:
The German auto giant also scrapped hope for sales revenue growth in 2026 as it prepares for a radical overhaul of the business:
The results come shortly after the company confirmed it is looking to cut up to 100,000 jobs, twice as many as previously stated, as it seeks to counter a profit slump amid billions of euros in tariff costs and intensifying competition from Chinese car brands.
Volkswagen's CEO Oliver Blume stated that the group's costs were 20% higher than comparable businesses, thus further cost reductions are necessary:
Volkswagen also flagged it expects sales revenue in 2026 to see a decline of up to 3%:
'An unprecedented risk scenario'
Blume said the company had managed to offset "continued unavoidable headwinds":
Shares of Volkswagen are down nearly 30% year-to-date:
