Volkswagen Adjusts 2025 Financial Forecast Amid Strategic Changes

Volkswagen AG has revised its 2025 financial forecast following strategic changes and updated ambitions from Dr. Ing. h.c. F. Porsche AG. Porsche, reevaluating its medium-term goals for 2026-2030, aims to reduce its targeted Group return on sales from an initial 15-17% to 10-15%.

Porsche's decision to discontinue a joint vehicle project with Volkswagen and modify its drivetrain plans affects both companies. Resulting adjustments lead to a projected Group operating return on sales of 2-3% for 2025, down from an earlier prediction of 4-5%. Furthermore, a €3 billion non-cash impairment charge will weigh on Volkswagen’s financial results.

The expected financial impact includes an additional €2.1 billion adjustment, summing to €5.1 billion in total negative influence on the 2025 fiscal year. Despite these challenges, Volkswagen maintains its Group sales revenue projections at last year's level, while net cash flow forecasts shift to zero billion euros, with net liquidity decreasing to approximately €30 billion.