Volkswagen expects profit margin rebound after tough 2025
Volkswagen AG forecasts a recovery in its profit margin in 2026 following a challenging 2025 marked by U.S. tariffs, rising Chinese competition, and the costly transition to electric vehicles.
The German automaker said it anticipates an operating margin of 4.0–5.5% this year, rebounding from 2.8% in 2025, which fell short of analysts’ expected 2.9% and down from 5.9% in 2024, News.Az reports, citing Reuters.
CEO Oliver Blume noted the company is navigating a “fundamentally different environment” as it balances global trade pressures and the shift toward electrification. Volkswagen also expects sales revenue to grow between 0–3% in 2026.
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The company’s outlook follows a year of hurdles, including billions in tariffs on U.S. imports and local competition in China, which affected market share and earnings. Volkswagen’s forecast signals optimism that these challenges will ease and margins will gradually recover.
By Aysel Mammadzada
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