VDe Vector

Volkswagen sees operating profit almost evaporate

The German carmaker recorded operating profit of just €100 million in the first nine months.

Volkswagen recorded operating profit of €100 million in the first nine months of 2026. In the same period last year, the figure was still €5.4 billion. The group points to US import tariffs, a shrinking Chinese market and growing competition in Europe.

The figures come from Volkswagen’s interim results, published on Thursday. Revenue fell slightly, from €238.7 billion in the first nine months of 2025 to €233.4 billion this year. Operating profit before special items came to €8.8 billion, but after special items just €100 million remained.

Volkswagen sold 5.9 million vehicles in the first nine months, 11 per cent fewer than a year earlier. Sales in China in particular are under pressure. According to Volkswagen, the number of new orders in Europe actually rose by around 4 per cent. The group said orders for fully electric cars there increased by 39 per cent.

Chief Financial Officer Arno Antlitz writes that the company must act quickly. In his view, US tariffs are weighing on results, the Chinese market is shrinking and competitive pressure in Europe is increasing sharply. Volkswagen says at the same time that electric cars now account for 40 per cent of its European order book, but that their profit margin remains lower than that of cars with an internal-combustion engine.

The group did not announce a new, separate jobs decision in the overview published on Thursday. Volkswagen did, however, refer to a cost programme worth approximately €31 billion. This is to come from a smaller model range, simpler structures, lower overheads, more efficient factories and faster product development.

The figures are relevant to the Netherlands because Volkswagen is one of Europe’s largest carmakers and many Dutch dealers, suppliers and business customers depend on the group’s brands. The results do not mean that Volkswagen is making a loss: the company still reported positive operating profit before special items. They do, however, show how strongly costs and market conditions are affecting the group.

The company also reported that cash flow in its automotive division rose to €4.4 billion, compared with €1.8 billion a year earlier. This could give Volkswagen more financial room to invest, but does not alter the sharp fall in operating profit. The coming months will show whether the cost programme and new electric models can restore profitability.

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