Volkswagen profit plunges as carmaker weighs mass job cuts

Email: online@newsofbahrain.com

Frankfurt: Volkswagen’s net profit plunged in the second quarter as the crisis-hit carmaker weighs up to 100,000 job cuts worldwide while grappling with intense competition in and from China.

Net profit for the three months to the end of June dropped 32.9 percent year-on-year to 1.54 billion euros ($1.75 billion). This slump follows a nearly 37 percent decline recorded during the same period in 2025 relative to 2024.

Financial performance across the 10-brand group which includes Audi, Porsche, Skoda, and Lamborghini, was severely impacted by a 500-million-euro charge for halting U.S. production of its electric ID.4 model, combined with negative mix effects from selling lower-margin products.

Furthermore, the automotive giant continues to face shrinking margins on electric vehicle sales, new U.S. tariffs, and growing pressure from Chinese market rivals.

In response to the declining performance, Volkswagen revised its full-year guidance downward, expecting sales to remain flat or drop by up to three percent, abandoning its earlier forecast of up to three percent growth. 

Chief Financial Officer Arno Antlitz stressed that the company must urgently accelerate efforts to structurally lower its cost base and sustainably improve earnings quality through swift and consistent implementation.