Hot! Volkswagen: What's Next

[Design FIRST]

Pretty clear evidence that the ID.CODE concept...

...will significantly influence the design of future high unit volume production Volkswagens...

A good thing IMHO.

 

[SCOTT27]

So is this going to be the I.D Golf?

 

[Design FIRST]

Appearing in today's edition of AMuS Online and translated into English by Google:
VW Profit Plunges by Almost Half
Tariffs and Porsche Weigh on Earnings
The Volkswagen Group recorded a significant drop in profits in fiscal year 2025. Net income after taxes fell from €12.4 billion in the previous year to €6.9 billion, a decline of 44 percent.

Revenue, however, remained almost stable. At €321.9 billion, it was only slightly below the previous year's figure of €324.7 billion. Despite continued high revenues, the Group's profitability deteriorated significantly. However, business developed more stably in the final quarter than in the first nine months of the year.

Porsche as a Key Contributing Factor
The performance of the Porsche division had a particularly strong impact on the Group's net income. Operating profit in the "Sport Luxury" brand group, to which Porsche belongs, collapsed. In 2024, this division's operating profit was still €5.3 billion. In 2025, it fell to just around €0.1 billion (€100 million). At the same time, the division's revenues declined significantly.

Several factors converged here. These included weaker business in China, additional costs due to US tariffs, and strategic adjustments related to the electrification strategy. One-off and special effects as a result of the brand's realignment also played a role. The performance of Porsche is therefore one of the main reasons for the sharp decline in Group profits.

Massive cost-cutting measures announced internally at VW
Are plants also on the chopping block?

Operating profit more than halved
In addition to the Porsche situation, geopolitical tensions, currency effects, and increasing competitive intensity also weighed on business.

The Volkswagen Group's operating profit fell from €19.1 billion in 2024 to €8.9 billion in 2025. This represents a decline of approximately 53 percent. The operating return on sales was only 2.8 percent, down from 5.9 percent the previous year.

Global sales slightly down
The Group's vehicle sales remained just below the previous year's level. Around 9.0 million vehicles were delivered worldwide in 2025, representing a decline of approximately 0.5 percent.

Europe and South America performed well. Sales in Europe rose by five percent, and in South America by ten percent. This contrasted with declines in North America and China. Sales in North America fell by twelve percent, and in China by six percent.

Order backlog for electric vehicles grows
While overall sales declined slightly, order intake in Europe increased significantly. Orders rose by around 13 percent compared to the previous year.

Demand for battery-electric vehicles grew particularly strongly. Orders for these models increased by approximately 55 percent. Their share of the total order backlog now stands at around 22 percent.

Financial situation remains stable
Despite the drop in profits, the Group's liquidity remained stable. Net cash flow in the automotive business rose to €6.4 billion in 2025. Net liquidity at year-end was approximately €34.5 billion, remaining at the same level as the previous year.

However, the dividend is set to decrease. The Board of Management and Supervisory Board are proposing a payout of €5.26 per preferred share for fiscal year 2025. This represents a decline of 17 percent.

Forecast for 2026: Volkswagen anticipates moderate growth for the current year. Revenue is expected to grow by between zero and three percent. The Group anticipates an operating margin in the range of 4.0 to 5.5 percent. Net cash flow in the automotive business is projected to be between €3 billion and €6 billion for 2026.

Volkswagen cites continued uncertainty in the environment. This includes geopolitical tensions, potential trade restrictions, volatile raw material prices, and increasing regulatory requirements.

 

[SCOTT27]

They will need to shift a lot more cases of Beetle Berry.