Oliver Blume’s message in full:
Dear colleagues,
The past few months have been demanding and have challenged all of us: geopolitical crises, trade conflicts, high regulatory requirements, volatile markets, intensified competition.
The U.S. tariffs alone cost the Volkswagen Group approximately 5 billion euro per year. At the same time, the overall market in China is plunging down by just over 20 percent in the first half of the year, despite well over 500 new models being launched in the first six months. This is competition in a state of exception. As a result, Chinese manufacturers are pushing forcefully into our home market, Europe - and rapidly gaining market share. In plug-in hybrids alone, they already account for more than 30 percent.
There has been a great deal of discussion and reporting in the media about a crisis at Volkswagen. In fact, we are experiencing a crisis that is affecting all car manufacturers alike. That makes it all the more important to look at our half-year results, which we presented today.
They show that the Volkswagen Group is holding its ground in this extremely challenging environment - even compared with the competition. Nevertheless, we have to fight extremely hard. And we must continue working hard to improve our performance and achieve our targets.
For the full year, we expect a robust performance above last year’s level - even though our operating result in the first half of the year was around 12 percent lower. Our sales revenue remains stable. Cash flow and net liquidity are at solid levels. Put differently: we are generating cash and have a solid financial foundation.
What is crucial is that our new products are being very well received in the markets. In the first six months, we delivered more vehicles in Europe and the other regions outside China than in the prior year. Our Electric Urban Car Family, comprising the ID. Polo and ID. Cross, the CUPRA Raval and the Škoda Epiq, has gotten off to an exceptionally strong start: more than 70,000 orders in the first few weeks - before people have even seen the models on the road. At the same time, our order bank for all-electric vehicles in Europe grew by more than 50 percent in the first half of the year.
What do these figures mean for us?
For me, there are three clear answers. First: We are in a position to act. The figures give us the foundation to hold our own in the current market environment, stay on track to achieve our full-year targets and continue to drive the transformation forward with determination. Second: The fundamental realignment of recent years is delivering results. The fact that we are in a position to act today is the result of systematic and consistent work. We have improved our products and technologies, strengthened our regions, simplified structures, reduced costs and increased productivity. We are seeing clear progress in design: our products are once again becoming clearer and more distinctive through clearly defined brand identities. At Volkswagen, we are seeing a positive response to the brand’s characteristic proportions, forms and lines - and to the way we are positioning iconic names such as Polo and GTI in the electric age. At Audi, the brand-defining RS models and the new Q7 have gotten off to an excellent start.
Disciplined programs are improving the quality of our products. Tangibly. Measurably. Across all brands. In 2026, Volkswagen, Škoda, Volkswagen Commercial Vehicles, CUPRA and SEAT are recording historic bests, with record-low levels of guarantee cases, goodwill cases and warranty claims. And through systematic attention to detail, Porsche has taken the top spot in the overall U.S. market in the prestigious JD Power customer satisfaction study.
On the financial side, we have been running cross-brand performance programs for three years. Their contributions are immense. These programs now enable us to offset financial headwinds from the external environment amounting to double-digit billions of euros. The progress we are making together is becoming visible. We are all investing a great deal of energy and effort in this. And it is paying off: thank you for your tremendous commitment.
My third answer: We must not let up now. We can see that the direction is right. Our results remain robust, but they are no guarantee for the years ahead. The situation in global markets is becoming more challenging at a pace we have never seen before. And because our costs remain too high, we earn too little on our cars. Only sustainably strong results will enable us to fund our future investments from our own resources.
In addition, we are seeing risk scenarios become increasingly tangible - much faster and far more dramatically than any of us could have anticipated.
The entire automotive industry is experiencing these pressures with exceptional intensity and more severely than many other sectors. Manufacturers and suppliers alike face the same challenges. All of us need to understand: if we do not keep moving forward, we will come under increasing pressure - with consequences for our earnings power and for our future. That is why we are taking action. Now.
Developing vehicles in Germany, producing them in Europe and selling them around the world as global models - this business model, which sustained our success for decades, no longer works for every brand in every region. That is why we are evolving it. Boldly and decisively. And with full confidence in our ability to do so. It is only because we have undertaken such a fundamental realignment in recent years that we are entering the next phase of the transformation from a position of strength.
At the same time, I am well aware that the discussions about the future of our company are on all our minds. You talk about them with colleagues, your families and with friends. A great deal is written in the media, and a great deal is speculated. Much of it is slanted and exaggerated. Questions often remain unanswered. I understand that all of this can cause concern, confusion and frustration. I would much prefer to be able to present the full picture, internally and externally, today and give you clear answers to every question.
We have developed that overall picture, and it is in place; but so far, we have only been able to communicate individual elements. Confidential matters that are still under discussion can only be communicated once decisions have been made. Even so, we have been in continuous dialogue for months - with our management teams, the works councils and through a wide range of dialogue formats across our brands, companies and regions. Through these channels, we provide updates on the status of our plans. And we will continue to do exactly that.
We have a clear strategy. We have a concrete plan. We have strong teams. What we do not have is time. That is why we have already started work in many areas and are implementing measures from our future plan. I can assure you that we have one unequivocal objective: We want to secure the long-term competitiveness and future of our unique Group.
One thing is clear: we must work even harder on our costs. But another thing is equally clear: this is not merely a cost-cutting program - it is, above all, a program for the future. It is the most comprehensive and strategically far-reaching future program in the Volkswagen Group’s history. For products, technologies, competitiveness, structures and growth areas.
Central to this is our ambition to become simpler and faster and to deploy our resources where they create the greatest value. With one clear focus: positioning our company at the forefront of the competition by fully harnessing its innovative strength. We are systematically adapting our business model to market realities. At the same time, we are seizing new opportunities and unlocking additional potential.
And none of this is an end in itself. We are doing it out of responsibility. For our customers. For our company. For our partners. And above all, for the people in the Group. The Volkswagen Group is an employer with a future – and will remain one. The task ahead is considerable. We know what we are capable of and we know what needs to be done. We have proved that often enough. And we will successfully manage the next steps as well. We are navigating extremely turbulent waters, but we are holding a steady course. That is why I look ahead to the second half of the year with confidence and determination. Thank you for your passion and your team spirit.
Thank you for your passion and your team spirit.