The German automaker reportedly lacks €11 billion needed to fund next year’s operations and investments
Germany’s largest carmaker, Volkswagen Group, is facing a potential financial crisis, with a multi-billion-euro cash-flow gap expected in 2026, Bild has reported, citing internal company figures.
The German auto giant will be about €11 billion short next year, leaving it unable to fund planned spending and investments, according to the newspaper. Volkswagen’s half-year report for 2025 showed operating profit down 33% from a year earlier and a negative cash flow of €1.4 billion.
A slump in profits, weak business in China and competition from Chinese brands, as well as the tariffs imposed by US President Donald Trump have been blamed for the company’s financial woes.
“Cuts are now being made practically everywhere – in marketing, sales, and some investments,” one source told the newspaper. Several holdings may have to be sold to raise “a portion of the billions needed” for the development of new models and advanced technologies, Bild added. Senior managers described the situation as “particularly fatal” during the transition from combustion engines to electric vehicles.
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