Volkswagen and its productivity: only €1 profit for every €100 of revenue

**Volkswagen** has drastically cut its profit forecasts for 2026, now projecting only **€1** in gain for every **€100** of revenue, far below the **€5.50** estimated previously. The decline is mainly attributed to sales issues in **China** and the lower profitability of electric cars.

## The blow from China and electric competition

**Volkswagen** shares dropped **6.4%** at the close of Friday trading, marking the largest losses for the **DAX** index. The primary reason for this correction is the downward revision of profit expectations for 2026. If before the automotive group expected to earn between **€4 and €5.50** in operating profit per **€100** of revenue, the forecast is now reduced to a maximum of **€1**. Furthermore, lower total revenues are anticipated, estimated at **€315 billion** this year, which is about **€7 billion** less than last year.

## Electric cars: a bittersweet reality

The situation in **China**, a crucial automotive market for **Volkswagen**, has become particularly delicate. Sales in the country fell by more than **20%** in August, directly affecting the manufacturer. Competition in the electric vehicle sector is fierce, with Chinese manufacturers gaining significant ground. Although **Volkswagen** is selling more electric cars in Europe, they generate less profit than petrol and diesel vehicles, largely due to the high cost of batteries.