The German car manufacturer Volkswagen has said it expects a 3 percent decrease in sales in 2026 due to the deterioration of the Chinese market, the largest in the world for automobiles and highly significant for the Wolfsburg group, as it accounts for 30 percent of its global deliveries.
The revision of the guidance is notable: the company had in fact expected sales to increase by 3 percent this year.
VOLKSWAGEN’S RESULTS IN THE SECOND QUARTER OF 2026
In the second quarter of 2026 Volkswagen – the second largest car manufacturer in the world by volume, after Toyota – recorded revenues of 82.4 billion euros, marking year-on-year growth and slightly exceeding analysts’ expectations. However, its operating profit fell by 9.5 percent to 3.5 billion euros, while observers expected a better result, at 3.9 billion.
BLUME’S CUTS
The company, already under pressure to reduce costs, could therefore proceed with another 50,000 layoffs worldwide and the shutdown of production in four plants in Germany.
In CEO Oliver Blume’s plans to restructure Volkswagen and make it “more innovative, faster, more attractive and more robust” there is the halving of the number of models and the sale of all assets deemed non-core. But the unions oppose the cuts: it should be remembered that politics has a significant influence on the company’s decisions because the German state of Lower Saxony is a shareholder with an 11.8 percent stake.
HOW VOLKSWAGEN IS DOING SO FAR IN 2026
In the first half of 2026 Volkswagen delivered 6.3 percent fewer cars worldwide. The biggest difficulties come from China, where local brands focused on electric vehicles – which sell to consumers at advantageous prices, benefiting from Chinese control over the battery and magnet supply chain – have gained ground and squeezed the space and profits of foreign companies.
Volkswagen has nevertheless managed to improve its position in North America in the second quarter, and also in Europe: in the latter case, this is thanks to the release of low-priced electric models also under the Skoda and Cupra brands.
