acf domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/ecg/ecgassociationdev/wp-includes/functions.php on line 6121Automotive News Europe — 2026-07-24
Automotive Industry
Volkswagen Group revised down its revenue forecast for 2026 after its operating profit slumped in the second quarter amid costly U.S. tariffs and intensifying competition from China.
The group, which includes subsidiaries Porsche and Audi, reported operating profit of €3.5 billion ($3.98 billion) in the April-to-June period, down 9.5 percent year on year. Revenue was €82.4 billion. This made for an operating margin of 4.2 percent.
VW now expects a decline of up to 3 percent in sales revenue this year, having previously forecast growth of up to 3 percent. The company maintained its forecast for an operating margin in the range of 4.0 percent to 5.5 percent.
The outlook cut underscores Blume’s challenge: making VW faster and leaner after years of software delays, bloated costs and declining profitability.
VW expects earnings to improve in the second half, with Blume citing strong demand for the company’s new models from its Electric Urban Car Family that includes the VW ID Polo, VW ID Cross, Cupra Raval and Skoda Epiq.
The company received 70,000 orders for the models in just a few weeks, he said.
China was the main drag on VW’s second-quarter earnings, with Chinese deliveries falling 37 percent in the three months through June as local rivals such as BYD and Geely Automobile expanded their lead on EVs.
The country’s property downturn has weighed on household wealth and consumer confidence, hitting big-ticket purchases such as German luxury cars.
VW has been trying to regain momentum in China through local partnerships and faster development. The group is working with Xpeng on new electric models, while Audi has teamed up with SAIC Motor on a China-specific EV platform.
Bloomberg contributed to this report