VW reports flat revenue as it plans to halve model range by 2030

Volkswagen Group disclosed its first-half 2026 results this week, revealing an automaker caught between stable top-line revenue and shrinking margins as it embarks on what CEO Oliver Blume called "the most comprehensive and strategically far-reaching future program" in the company's history.volkswagen-group

Sales revenue came in at €158.1 billion, essentially unchanged from €158.4 billion a year earlier, but operating profit dropped 11.6% to €5.9 billion as vehicle deliveries fell 8.4% to 4 million units. Blume attributed the headwinds to U.S. tariffs costing the group roughly €5 billion per year and a Chinese market that plunged more than 20% in the first half despite over 500 new models launched by competitors.volkswagen-group

A Sweeping Overhaul

The results landed alongside an intensifying restructuring effort. VW plans to cut its global model range by half by 2030 and reduce build options — powertrain, color, trim, and specification choices — by 75%. A cost-cutting program could put up to 100,000 jobs at risk worldwide, roughly 15% of the group's approximately 657,000-strong workforce, with 50,000 positions targeted for elimination by 2030. Four German plants — in Hannover, Zwickau, Emden, and Neckarsulm — are under review.bizcommunity+1

The company employs about 60% more people than Toyota yet delivers fewer vehicles, a disparity that stems from VW's vertically integrated production model. Toyota delivered 5.39 million vehicles in the first half with around 391,000 employees, compared with VW's 4.13 million from 629,000 workers.autojosh

Porsche Drag and Market Pressure

Porsche has become the group's most visible weak spot. The sports car maker's operating profit collapsed to €90 million in 2025, down from €5.3 billion the prior year, absorbing €2.4 billion in special charges. Chinese deliveries fell 26%, and Porsche was ejected from the DAX last September.ad-hoc-news

VW's preferred shares hovered near yearly lows, sitting roughly 10% above the 52-week low set in early July. Analyst opinion is divided: Berenberg holds a buy rating, while UBS maintains a sell recommendation.ad-hoc-news

Signs of Life

Blume pointed to bright spots. The Electric Urban Car Family — comprising the ID. Polo, CUPRA Raval, and Škoda Epiq — drew more than 70,000 orders in its first weeks. The European order bank grew about 12% from year-end 2025, and EV orders in Europe rose more than 50%. Quality metrics across VW, Škoda, and CUPRA reached historic bests, with record-low warranty claims.volkswagen-group

"We are navigating extremely turbulent waters, but we are holding a steady course," Blume told employees, adding that VW expects an improved margin in the second half. Whether ten new models slated for the remainder of 2026 can offset the drag of restructuring costs and cooling demand remains the question hanging over a company trying to execute a historic downsizing and a product-led revival at the same time.ad-hoc-news+1