VW revises profit down
The Volkswagen Group has revised down its revenue forecast for 2026 after its operating profit slumped in this year’s second quarter amid costly US tariffs and intensifying competition from China.
The group, which includes subsidiaries Porsche and Audi, reported operating profit of €3.5 billion – or about NZ$6.85b – between April and June for a year-on-year drop of 9.5 per cent. Revenue was €82.4b and made for an operating margin of 4.2 per cent.
VW now expects a decline of up to three per cent in sales revenue this year, having previously forecast growth of up to three per cent. The company has maintained its forecast for an operating margin in the range of four to 5.5 per cent.
Chief executive Oliver Blume, pictured, is pushing for radical restructuring of the company, which includes cutting 100,000 jobs, to make it more cost competitive.
The group offset “continued unavoidable headwinds in the double-digit billions” in the first half of this year, says Blume. “At the same time, the environment for the industry remains extremely challenging.” He highlights geopolitical crises, trade conflicts, high regulatory requirements, volatile markets and intensified competition.
