BRAND GROUP CORE ON TRACK DESPITE SPECIAL ITEMS; NEW STEERING MODEL GIVES ADDITIONAL BOOST IN 2026
12 March 2026
- At 6.8 billion euros, operating result in 2025 close to prior year level in spite of external negative effects
- Noticeably lower fixed costs through performance programmes and implementation of wage agreement – further efficiency increases are nevertheless necessary
- Realignment of the Brand Group Core Board of Management brings leaner processes and decision-making paths and simplifies steering from 2026
- Electric Urban Car Family with new models such as the ID. Polo1 and ID. Cross2 from 2026 make e-mobility even more affordable for many customers
The Volkswagen Group’s Brand Group Core (BGC) implemented its strategic goals as planned in 2025 – and reported an operating result of 6.8 billion euros – close to the prior year level despite significant negative special items. Adjusted for additional expenses for restructuring, the diesel issue and U.S. import tariffs, the operating result for 2025 came in at 8.2 billion euros – in line with the set target.
In strategic terms, 2025 was a significant year in which the foundations for increased efficiency and more competitive products were laid. Nevertheless, resilience must be further strengthened in 2026. For this reason, Volkswagen, Škoda, SEAT&CUPRA and Volkswagen Commercial Vehicles are streamlining their organisational structures with a new cross-brand steering model – thereby creating potential for further savings.
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“We consistently delivered in 2025. The lasting impact of the structural improvements under our performance programmes is unfolding. At the same time, important steps still lie ahead of us in terms of our return. Factors such as the U.S. tariffs highlight the fact that we must improve our resilience further. That is precisely what our new governance will achieve: leaner structures, swifter decision-making and increased efficiency – without diluting the identity of our strong brands. This is the key to long-term competitiveness. Overall, we are on track, but we are still a long way from the finishing line.” |
Key figures Brand Group Core (Jan. – Dec. 2025)
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Brand Group Core vehicle sales rose |
Solid 3.3% year-on-year growth in vehicle sales. This is primarily due to good business development in the home market of Europe and the strong market share in the BEV segment. |
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3.7% growth in Brand Group Core |
Growth driven by successful model launches and improved product mix across all four brands. |
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Brand Group Core operating result |
The operating result was only marginally lower than the previous year – but was impacted by special factors such as restructuring costs, the diesel issue and U.S. import tariffs. |
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Brand Group Core operating margin |
The 0.3 percentage point decrease is due to external special effects. |
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Net cash flow increased by |
The marked rise in net cash flow underscores improved capital efficiency and successful working capital management. Strategically necessary investments in future technologies and in model ramp ups were realised. |
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“We strengthened the financial basis for the Brand Group Core significantly in 2025: |
Review
The Brand Group Core further consolidated its position in 2025 despite a difficult market environment. The strong, clearly positioned brands in the BGC successfully held their ground in an environment shaped by new U.S. import tariffs, stagnating European markets, geopolitical tensions, growing competitive pressure from China and generally slower BEV growth. The increases in vehicle sales and sales revenue therefore underscore the attractiveness of the BGC model range.
At the same time, the efficiency measures that have been initiated show a significant impact: overheads and factory costs were sustainably reduced, process optimisations in production and development increased performance, and product costs were lowered through standardisation and less complexity. As planned, the R&D ratio remained below the strategic target of 4%.
Business in the regions presented a mixed picture: business in Europe remains strong and requires focused market cultivation. Overall, the dynamic in South America is positive, while the North American market remains challenging,
Outlook
In 2026, the Brand Group Core will continue to pursue its consistent course towards closer cooperation and increased efficiency. Efforts will focus on optimising cross-brand processes and expanding joint initiatives.
The new steering model strengthens overarching management, while the brands preserve their clear identity for customers. Going forward, the increase in cross-brand development scope will raise the efficiency level of the BGC’s total investment. The basis for this will be a leaner, more efficient “powerhouse” with closer cooperation in production, procurement and development.
A central project for the Brand Group Core in 2026 is the Electric Urban Car Family with four models from the Volkswagen, CUPRA and Škoda brands debuting on the market, making e-mobility even more affordable for many customers.
The starting price for the Volkswagen ID. Polo will be around 25,000 euros – the CUPRA Raval and Škoda Epiq will target additional customer groups. From their base in Spain, SEAT&CUPRA will lead this joint project. Compared with the previous approach, development of the cross-brand platform brings savings of some 650 million euros over the term of the project. It is planned to produce several hundred thousand units per year. The economies of scale achieved in this way will close the margin gap between BEVs and ICEs still further.
The newly-structured Brand Group Board of Management that came into effect in January 2026 will make processes, structures and decision-making paths significantly leaner.
Clear responsibilities and faster decision-making processes strengthen the Brand Group’s competitiveness. The new governance has an impact on the Production, Technical Development and Procurement units in particular.
In Production alone, the approved reorganisation of the steering model unlocks cumulative savings potential of one billion euros through 2030. Going forward, the new regional managers will be responsible for cross-brand and cross-national planning, steering and logistics. This will make the regions more independent, more efficient and more flexible.
Cross-brand projects also increase efficiency in development: duplicated development work is avoided, development cycles are shortened and budget funds are allocated more effectively – while maintaining consistent quality and clear brand differentiation. At the same time, the Brand Group Core is strengthening its global competitiveness in 2026 by optimising sales performance, improving working capital and designing an after-sales plan to increase service profitability.
In parallel, the Volkswagen brand is launching the largest model initiative in its history under its “Volkswagen Boost 2030” strategy. The package of measures comprising the performance programme and the 2024 wage agreement lays the foundation for a stable earnings situation and a return on sales of more than 4% in 2026.
Overview of the brands in the Brand Group Core
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Volkswagen Passenger Cars |
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“For Volkswagen, 2025 was a year for catching up. We focused on what our brand stands for: quality, intuitive usability and clear product identity. |
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Volkswagen Commercial Vehicles |
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“All in all, Volkswagen Commercial Vehicles was able to increase market share significantly in 2025 in a declining overall market. We continue to be the clear leader in 12 European markets, including our home market of Germany. With a market share of 25 per cent, the ID. Buzz remains the undisputed market leader in its segment in Europe. |
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SEAT/CUPRA |
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“We expected 2025 to be a challenging year in view of our clear commitment to electrification and the transformation of our company. Unexpected one-time effects made the year even more difficult. Nevertheless, last year also showed we are on track. We are ready for the start of the Electric Urban Car Family, and the momentum from CUPRA continues. Following last year’s record deliveries, 2026 will be the year of the Raval: a groundbreaking car that will convince even the most hardened electrification skeptics.” |
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Škoda Auto |
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“2025 was an important milestone for Škoda Auto. We posted record financial results, delivered over one million vehicles and became the third best-selling automotive brand in Europe. Our growth is becoming increasingly global: deliveries in India have more than doubled, we have started production in Vietnam and developed new markets in the Middle East. After more than 130 years, we are still focusing on affordable and innovative mobility. We offer our customers a choice of combustion engine, hybrid and all-electric vehicles. We are taking the next step in 2026 with two important new electric models – the Škoda Epiq and the Škoda Peaq.” |
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Key figures for the Brand Group Core:
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Key financials |
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2025 |
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2024 |
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Change |
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Vehicle sales (thousand units) |
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5,125 |
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4,960 |
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3.3% |
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Sales revenue |
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145,202 million € |
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140,004 million € |
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3.7% |
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Operating result |
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6,821 million € |
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6,961 million € |
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-2.0% |
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Operating margin |
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4.7% |
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5.0% |
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-0.3%-points |
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Net cash flow |
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6,946 million € |
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4,680 million € |
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48.4% |
Key figures for the Brand Group Core brands:
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Vehicle sales |
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Sales revenue |
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Operating result |
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Operating margin |
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000 units/ mill € |
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2025 |
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2024 |
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2025 |
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2024 |
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2025 |
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2024 |
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2025 |
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2024 |
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Volkswagen Passenger |
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3,104 |
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3,109 |
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86,570 |
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88,262 |
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2,612 |
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2,587 |
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3.0% |
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2.9% |
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Volkswagen Commercial |
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428 |
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404 |
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16,857 |
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15,124 |
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245 |
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743 |
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1.5% |
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4.9% |
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SEAT/CUPRA |
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657 |
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637 |
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15,272 |
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14,530 |
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1 |
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633 |
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0.0% |
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4.4% |
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Škoda Auto |
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1,173 |
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1,090 |
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30,105 |
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27,787 |
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2,502 |
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2,305 |
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8.3% |
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8.3% |
1) ID. Polo - Near-production concept car.
2) ID. Cross - Near production concept car. The model is not yet offered for sale.
Contacts
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Jens Katemann |
Christoph Adomat |
Kate Thompson
UK Corporate Communications, +44 (0) 7713 265562
kate.thompson@vwg.co.uk | www.volkswagengroup.co.uk
About the Volkswagen Group
The Volkswagen Group is one of the world's leading car makers, headquartered in Wolfsburg, Germany. It operates globally, with 111 production facilities in 16 European countries and 10 countries in the Americas, Asia and Africa. With around 663,000 employees worldwide. The Group’s vehicles are sold in over 150 countries.
With a comprehensive portfolio of strong global brands, leading technologies at scale, innovative ideas to tap into future profit pools and an entrepreneurial leadership team, the Volkswagen Group is committed to shaping the future of mobility through investments in electric and autonomous driving vehicles, digitalisation and sustainability. The goal: As a “Global Automotive Tech Driver”, to make the best automotive technologies accessible to customers worldwide - from entry-level mobility to the luxury segment.
In 2025, the total number of vehicles delivered to customers by the Group globally was 9.0 million (2024: 9.0 million). Group sales revenue in 2025 totaled EUR 321.9 billion (2024: EUR 324.7 billion). The operating result in 2025 amounted to EUR 8.9 billion (2024: EUR 19.1 billion).
About Brand Group Core
The brands belonging to the Volkswagen Group are organised in the Brand Groups Core, Progressive, Sport Luxury and Trucks. The Volkswagen Group also includes CARIAD, Group Technology , Financial Services and MOIA.
Within the Brand Group Core, more than 200,000 employees of the sister brands Volkswagen, Škoda, SEAT/CUPRA and VW Commercial Vehicles work together at more than 20 plants to realise their existing enormous synergy potential.
By standardising and streamlining processes and making greater use of joint resources, these brands can significantly improve overall efficiency – thus freeing up the space needed for the coordinated and sustainable development of best-in-class products in the relevant market segments.
Originally published by SEAT
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