Volkswagen reported a significant decline in profitability for the second quarter of 2026. The group’s net profit after taxes fell by 32.9 percent to €1.54 billion, according to the automaker’s announcement on Friday. This figure is a sharp drop compared to the same period last year, when Volkswagen had earned €2.29 billion, a result which already represented a 36 percent decrease year-on-year.
Group deliveries went down by nearly 9 percent, reaching 2.08 million vehicles. The Chinese market was particularly affected, with sales plummeting by over a third to 424,300 units. Sales figures in other regions, however, demonstrated slightly more positive development.
Oliver Blume, the Group CEO, had previously highlighted the challenges posed by increasing competition, geopolitical tensions, and tariffs earlier this spring, and subsequently announced fresh cost-cutting measures. These plans reportedly involve reviewing up to 100,000 jobs globally and shutting down four production plants in Germany.
These restructuring plans have met with considerable opposition. Trade unions, the Works Council, and the state of Lower Saxony, which holds a 20 percent stake in Volkswagen, have voiced concerns. The plans were initially rejected by the Supervisory Board, where these stakeholders hold the majority. Volkswagen had previously announced a reduction of 50,000 positions by 2030, 35,000 of which are expected to be eliminated within the core brand.
