BERLIN, July 24 (Xinhua) -- Germany's automotive giant Volkswagen Group reported on Friday its net profit fell nearly a third in the first half of 2026 from a year earlier, as U.S. tariffs and intensifying competition weighed on earnings, and the German carmaker lowered its full-year revenue outlook.
Profit after tax dropped 31 percent to 3.1 billion euros (3.5 billion U.S. dollars) in the first six months, the company said in its half-year report. Vehicle deliveries declined 6.3 percent year-on-year to around 4.1 million units, while operating profit fell 12 percent to 5.9 billion euros (6.7 billion U.S. dollars).
Volkswagen Group CEO Oliver Blume said the auto industry continued to face major headwinds from geopolitical uncertainty, trade conflicts, tighter regulation and intensified competition, but added that restructuring and cost-cutting measures launched over the past three years were starting to show results across the group.
Volkswagen now expects its 2026 revenue to fall by as much as 3 percent or remain flat year on year, compared with its previous forecast of zero to 3-percent growth.
Blume told reporters that he expected decisions on the group's new cost-cutting plan by the end of the year. A preliminary theoretical calculation suggested that around 50,000 additional jobs could be cut worldwide, though the actual scale remained under review.
The move comes as Volkswagen faces mounting pressure alongside Germany's broader automotive industry, which is grappling with weak demand, rising global competition and the impact of U.S. tariffs. The new package would come on top of the group's previously announced plan to cut around 50,000 jobs in Germany by 2030, including roughly 35,000 at the core Volkswagen brand, with the remainder involving Audi and Porsche. ■