Volkswagen has abandoned its expectation of revenue growth this year, lowering its outlook on Friday as the German automaker faces mounting pressure from tariffs and intensifying competition from Chinese rivals.
The revised forecast accompanied the company’s second-quarter financial results, which showed a 9.5% decline in profit, News.Az reports, citing Reuters.
CEO Oliver Blume is pressing ahead with a sweeping restructuring plan, including a proposal to cut 100,000 jobs, aimed at improving the competitiveness of the world’s second-largest automaker.
Volkswagen now expects sales revenue to decline by as much as 3% in 2026, compared with its previous forecast of up to 3% growth.
The company maintained its operating margin forecast at between 4.0% and 5.5%, an improvement from last year’s 2.8%.
Shares in Volkswagen fell around 3% following the announcement.
The German automotive group, which owns brands including Porsche and Audi, reported an operating profit of €3.5 billion ($3.98 billion) for the April-June quarter.
Analysts had expected a slight improvement compared with the same period last year, according to a Visible Alpha poll.