Volkswagen reported an operating profit of 3.5 billion euros ($3.98 billion) for the second quarter of 2026, which is nearly 10% lower than the same period last year and below the anticipated 4.3 billion euros. The company attributed this decline to the discontinuation of its ID.4 electric vehicle in the U.S. and negative mix effects.
In light of these results, Volkswagen revised its sales revenue forecast for 2026 to a range of -3% to 0%, down from a previous estimate of 0% to 3%. Additionally, the company announced plans to cut up to 100,000 jobs, significantly more than earlier projections, as it grapples with high costs and stiff competition from Chinese automakers.
CEO Oliver Blume noted that Volkswagen's costs are 20% higher than those of comparable companies, necessitating further cost reductions. The automaker also faces uncertainty regarding the future of four German factories that were previously at risk of closure. Year-to-date, Volkswagen shares have declined nearly 30%, and the stock fell 3.3% in premarket trading following the earnings announcement