# Volkswagen Group restructuring and brand performance > Live situation record from CLSTR: https://clstr.news/situations/volkswagen-group-internal-restructuring-and-performance > Updated: 2026-09-23T02:48:49.000Z. Sources: 14. Developments: 2. The Volkswagen Group is undergoing significant internal restructuring and financial shifts. Skoda has demonstrated operational stability, reporting an 8.3% profitability in 2025, which contrasts with Porsche’s profitability drop to 1.1% following substantial exceptional charges and weakened demand in China. To optimize production, the Volkswagen Group has assigned the manufacturing of the Skoda Epiq electric SUV to the Landaben plant in Navarra, Spain. Skoda CEO Klaus Zellmer noted that Spain’s renewable energy availability provides a “substantial benefit” and a “primary competitive advantage” for industrial operations compared to more cost-efficient locations in Eastern Europe. Recent data highlights a widening gap between the group’s brands. Porsche’s operating return on sales fell sharply from 14.1% in 2024 to 1.1% in 2025, driven by approximately 3.9 billion euros in extraordinary costs related to battery investments, product strategy shifts, and US tariffs. Additionally, Porsche faces a significant decline in China, where deliveries have dropped by over 50% in four years. This has led Volkswagen to write down 6 billion euros on its 75% stake in Porsche. Conversely, Skoda has emerged as a central profit driver. Analyst Matthias Schmidt noted that Skoda has effectively become the “new Porsche” of the group due to its stable and superior operating margins. ## Claims - Volkswagen has written down €6 billion on its stake in Porsche. (disputed by 5 sources) - Analyst Matthias Schmidt stated that Škoda has effectively become the new Porsche of the Volkswagen Group. (corroborated by 7 sources) - Porsche faced extraordinary costs of approximately 3.9 billion euros in 2025. (corroborated by 5 sources) - Škoda achieved an operating return on sales of 8.3% in 2025. (corroborated by 4 sources) - Porsche’s operating return on sales fell to 1.1% in 2025 from 14.1% in 2024. (corroborated by 4 sources) - Porsche deliveries in China have declined by more than 50% over the last four years. (corroborated by 3 sources) - Volkswagen Group has lowered its 2026 operating profit margin forecast to no more than 1%. (corroborated by 2 sources) - Škoda's deliveries increased by 9.1% year-on-year to 555,700 vehicles in the first half of 2026. (corroborated by 2 sources) - Porsche vehicle deliveries fell by 16.5% year-on-year in the first half of 2026. (corroborated by 2 sources) - Porsche’s goodwill decreased from €18.8 billion in 2022 to approximately €10 billion. (single source) - Porsche’s profit margins have fallen below the Volkswagen Group average and below those of Skoda. (single source) - Porsche plans to cut approximately 4,000 more jobs to cover indirect cost gaps. (single source) ## Timeline ### 2026-09-23: Skoda cites Spanish renewable energy as manufacturing advantage Skoda CEO Klaus Zellmer cites Spain's low-cost renewable energy as a major competitive advantage for the Volkswagen Group's manufacturing operations and the production of the new electric Skoda Epiq. 2 sources. https://clstr.news/cluster/skoda-cites-spanish-renewable-energy-as-manufacturing-advantage ### 2026-09-22: Porsche profitability declines as Škoda becomes Volkswagen Group's key profit driver Porsche's profitability has plummeted to 1.1% in 2025, while Škoda has emerged as a key profit driver for the Volkswagen Group, leading analysts to call the Czech brand the group's “new Porsche.” 12 sources. https://clstr.news/cluster/skoda-outperforms-porsche-in-profitability-within-volkswagen-group --- Cite as: Volkswagen Group restructuring and brand performance. CLSTR, https://clstr.news/situations/volkswagen-group-internal-restructuring-and-performance