Volkswagen Group makes decent progress in a difficult environment
“In the first nine months of the year, we have seen a mixed picture. On the one hand, there is the market success of our combustion engine and electric vehicles, as well as good progress with restructuring. On the other hand, the financial result is significantly weaker compared to the previous year. This is partly due to the ramp-up of lower-margin electric vehicles. Additionally, we recorded charges, primarily from increased tariffs and the adjustment of the product strategy at Porsche. Excluding these charges, the Group operating margin is 5.4 percent – at first glance a respectable figure in the current economic environment. But increased trading tariffs burden us by up to 5 billion EUR on a full-year basis. Those effects will continue to persist – and that is why we must rigorously implement the performance programs in place, push forward efficiency measures and develop new approaches. Our focus will be – amongst others – on the targeted use of our scale and exploiting synergies within the Group even more effectively.”
Key Figures
238.7 billion EUR sales revenue in 9M 2025, slightly above prior-year level (9M 2024: EUR 237.3 billion)
Volkswagen Group sales revenue increased by 1 percent year-on-year. Slight growth in the Brand groups Core and Progressive more than offsets a decline in the Sport Luxury Brand Group.
5.4 billion EUR Operating Result in 9M 2025, 58% below 9M 2024 (EUR 12.8 billion); Operating Margin of 2.3%
Operating result impacted by negative price and mix effects as well as US tariffs; provisions and impairments related to the realignment of Porsche’s product strategy and a goodwill impairment at Porsche resulted in additional charges of around EUR 4.7 billion. Consistent implementation of performance programs is beginning to take effect.
1.8 billion EUR Net Cash Flow in the Automotive Division in 9M 2025 (9M 2024: EUR 3.4 billion)
Net Cash Flow in 9M 2025 47 percent below prior year due to lower cash flow from operating activities, including cash outflows related to US tariffs and the acquisition of additional Rivian shares.
6.6 million vehicle sales in 9M 2025, slightly above 9M 2024 (6.5 million vehicles)
Growth in South America (+13 percent), Western Europe (+4 percent) and Central and Eastern Europe (+11 percent) more than offset expected declines in China (–2 percent) and North America (–11 percent).
+17% order intake for vehicles in Western Europe in 9M 2025
Order growth driven in particular by new models of all drive types; BEV orders increased particularly strongly (+64 percent), accounting for around 22 percent of total order intake in Western Europe.
Outlook for fiscal year 2025 as of September 19, 2025
The Volkswagen Group expects its sales revenue for 2025 to be in line with the previous year. The Group’s operating return on sales is projected to range between 2.0 and 3.0 percent.
In the Automotive Division, the company expects an investment ratio between 12 and 13 percent in 2025. Net cash flow for the year 2025 is expected to be around EUR 0 billion. This includes cash outflows for future-oriented investments as well as for restructuring measures. Net liquidity in the Automotive Division is expected to amount to around EUR 30 billion in 2025. The Volkswagen Group continues to pursue its objective of maintaining a solid financing and liquidity policy.
The forecast is based on the assumption of adequate availability of semiconductors.
Note: As of January 2025, adjustments to the reporting logic will lead to more transparent disclosure of sales revenue in the Automotive Division. Mathematically, this will result in a lower investment ratio – by 130 basis points to 13.0 percent in the 2024 fiscal year. Based on the adjusted reporting logic, the Group expects the investment ratio in the Automotive Division to decrease to between 12 and 13 percent in 2025 and to around 10 percent in 2027. For further details, see page 180 of the 2024 Annual Report.
