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Volkswagen Group restructuring and brand performance

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2026-09-24 18:57 UTC → 2026-09-25 09:32 UTC · added ~~removed~~

Volkswagen Group ~~internal~~ restructuring and brand performance

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.

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