Volkswagen profit falls 28% as China and US sales weaken

Volkswagen on Thursday reported a further decline in profit in the first quarter of 2026, as weaker sales in key markets and ongoing industry headwinds weighed on Europe's largest carmaker.

Net profit fell 28.4% year-on-year to €1.56 billion ($1.82 billion) in the January-March period, the company said. A year earlier, VW had posted €2.19 billion, already down 41% from the previous year.

Revenue declined 2.5% to €75.7 billion, while operating margin slipped to 3.3% from 3.7% a year earlier.

"Wars, geopolitical tensions, trade barriers, stricter regulations and intense competition are creating headwinds," chief executive Oliver Blume said in a statement.

The group continues to be pressured by weak sales in China and the United States. Global deliveries across all brands fell 4% to 2.05 million vehicles, with declines in both regions offsetting gains in Europe.

Earnings were also weighed down by weak results at luxury sports brand Porsche, where net profit dropped by nearly a quarter, and at truck subsidiary Traton, which reported a sharp earnings decline due to special charges.