Volkswagen Group’s recent earnings decline in the second quarter has prompted CEO Oliver Blume to attribute the shortfall to a confluence of global challenges, including geopolitical instability and trade tariffs. Speaking to “Bild am Sonntag”, Blume stated, “The world is in turmoil: geopolitical crises, wars, tariffs. This affects the entire industry – and us as well.
While acknowledging the difficulties, Blume emphasized that the negative impact of tariffs and ongoing restructuring efforts skewed the figures. He asserted that, excluding these factors, the group’s second-quarter profit margin stood at approximately 7%, representing the upper end of expectations.
Blume underscored the need for the German automotive industry to fundamentally reassess its business models, pointing to the shifting global landscape. “The comfort zone of past decades is no longer present: free global trade, global economic growth, limited competition.
Acknowledging the industry’s inherent strengths, Blume expressed confidence in Germany’s automotive sector’s capabilities and resilience. However, he also highlighted the importance of governmental support. “Now it’s about an economic revival. Investment incentives, competitive energy prices, attractive infrastructure, tax breaks, less bureaucracy. We see good impulses in the coalition agreement”. He further commented positively on the governmental direction, noting, “Chancellor Merz is creating a positive dynamic.
Looking ahead, Volkswagen intends to navigate these challenges and emerge stronger. Blume announced a commitment of over €150 billion in investments over the next five years, signaling a significant long-term bet on the company’s future. “This is a strong signal for Germany, Europe and the world. As Volkswagen Group, we have the strength and stamina – and will defy the storms”.
