German automaker Volkswagen (VWAGY) has reported a 10% year-over-year decline in its profit amid sluggish global sales of its vehicles.
Europe’s biggest carmaker posted an operating profit of 3.5 billion euros ($3.98 billion U.S.) for the second quarter, down 10% from a year ago.
The profit figure missed analyst expectations for 4.3 billion euros.
Worse, Volkswagen said that it no longer expects revenue growth in 2026 as the company undertakes a major overhaul of its business.
Management now expects global sales this year to decline up to 3% versus a previous forecast of 3% sales growth.
The poor financial results come after the company said earlier this year that it is planning to cut up to 100,000 jobs, the biggest workforce reduction in Volkswagen’s 89-year history.
The automaker is struggling with billions of Euros in tariff costs and intensifying competition from Chinese car brands that have flooded into the European Union (EU).
Volkswagen CEO Oliver Blume has said that the company’s costs are 20% higher than comparable businesses, and that there’s a need to reduce costs company wide.
Volkswagen has targeted four of its German automotive factories for closure as it looks to scale back manufacturing.
VOW3 stock is down 33% this year and trading at Euros 71.46 per share.
Tech Insider
