Volkswagen Group (VOW) investor relations material

H1 2026 financial performance

• Sales revenue reached €158.1bn with 4.1 million vehicle deliveries and an operating margin of 3.8% (4.3% before special effects).

• Automotive net cash flow was €3.2bn, and net liquidity stood at €32.7bn.

• Special effects of €0.9bn impacted results, mainly from US ID.4 production end, restructuring, and Automated Driving Alliance exit.

• Investments were reduced, with the automotive investment ratio at 10.6% and targeted at 11–12% for FY 2026.

• Net cash flow was supported by lower investments, reduced cash taxes, and working capital improvements.

Regional and segment performance

• Deliveries increased in Europe (+3.5% H1), North America (+7.7% Q2), and South America (+8.3% H1), but dropped sharply in China (-25.9% H1).

• European order book rose 12% year-to-date, with BEVs making up 31% of the order book.

• Brand Group Core and Progressive results were stable year-on-year, while Sport Luxury improved significantly.

• Škoda showed strong performance; VW was impacted by restructuring and US ID.4 stop.

• Financial Services maintained solid margins and contract growth, with a stable credit loss ratio.

Strategic initiatives and cost measures

• Workforce realignment and cost reduction programs are on track, targeting over €6bn in net cost savings by 2030 and a 50,000 headcount reduction.

• Overhead cost reduction aims for a €11bn cut by 2030, with a 25% decrease in SG&A.

• Product portfolio is being optimized, reducing model count by up to 50% and component variety by 75%.

• Production network is being aligned with market realities, including capacity reductions and plant closures.