Volkswagen records significant losses due to declining sales

Volkswagen reported a 9.5% decrease in operating profit, affected by a loss of 500 million euros due to the halt in production of the electric SUV ID.4 in the United States.

In the period from April to June, net profit was 1.54 billion euros, influenced by a drastic decline in sales in China, where local competition is becoming increasingly fierce. CEO Oliver Blume highlighted the challenges in the industry, including geopolitical crises and strict regulations. Volkswagen has revised its revenue growth forecasts for 2026, estimating a range between -3% and 0%.

Although the operating margin remains between 4% and 5.5%, the company is facing a 31.6% decline in sales in China and a 7.4% reduction in the U.S. In this context, Volkswagen announced a drastic cost-cutting plan, which could involve the elimination of 50,000 jobs, generating negative reactions from the IG Metall union.

The company is relying on the European market for a potential recovery, where orders for electric vehicles have doubled compared to last year.