Volkswagen faces a sharp drop in profits, while Škoda and…

Volkswagen faces a sharp drop in profits, while Škoda and Stellantis grow

06.05.2026 20:00 HotInfo

The German automotive group Volkswagen recorded a significant decline in operating profit of 14.3 percent to 2.5 billion euros in the first quarter of 2026. This result is significantly worse than expectations and represents one of the most difficult periods for the group since the Dieselgate scandal. The decline was mainly caused by higher US tariffs, geopolitical uncertainty, and strong competition from China, where the company recorded lower demand. hnonline.sk ↗

In contrast, other automakers within the Volkswagen group are achieving better results. Czech Škoda Auto increased its operating profit by 20.9 percent to 660 million euros in the same period, significantly helped by growing demand for electric vehicles. Italian automaker Stellantis returned to profit thanks to sales volume growth of more than a tenth. hnonline.sk ↗

Volkswagen is attempting to adapt to the new challenges through drastic measures. The company has become the largest shareholder of American electric vehicle manufacturer Rivian with a 15.9 percent stake, and is investing up to 5.8 billion dollars in the cooperation. At the same time, it presented the new ID. Polo electric vehicle priced at 25,000 euros as its smallest and cheapest electric vehicle intended for a broader market. teraz.sk ↗

However, Volkswagen is also facing fundamental structural changes. The group will enter the arms industry, and its plant in Osnabrück will stop producing automobiles from 2027. The automaker has also announced plans to lay off 50,000 workers in Germany, while continuing to hire new employees in Slovakia. The outlook remains uncertain given the high US tariffs and slowed adoption of electric vehicles on the market. startitup.sk ↗

This summary was generated by artificial intelligence. It may contain inaccuracies. Please verify information in the original sources below.