Volkswagen Group

What does Volkswagen Group own?
Volkswagen Group owns twelve automotive and commercial vehicle brands: Volkswagen, Skoda, SEAT, CUPRA, Audi, Porsche, Lamborghini, Bentley, Bugatti, MAN, Scania, and Volkswagen Commercial Vehicles. The group also owns Ducati, the Italian motorcycle manufacturer. Porsche AG is a separately listed subsidiary in which Volkswagen AG retains a 75 percent stake.

Is Volkswagen Group publicly traded?
Yes, Volkswagen AG is listed on the Frankfurt Stock Exchange with ordinary shares (VOW) and preferred shares (VOW3). Despite being publicly listed, effective voting control rests with Porsche Automobil Holding SE, the Porsche and Piech family holding company, which holds approximately 53 percent of ordinary shares. The State of Lower Saxony holds approximately 20 percent of ordinary shares and has a statutory blocking minority.

Who founded Volkswagen?
Volkswagen was founded in 1937 by the German Labour Front, a Nazi-era organization, with Ferdinand Porsche as chief engineer. The original purpose was to produce an affordable people's car for German workers. After World War II, the factory was transferred to the West German government. The modern Volkswagen Group was built through decades of acquisitions under subsequent management, particularly under Ferdinand Piech's leadership in the 1990s and 2000s.

Where is Volkswagen Group headquartered?
Volkswagen Group is headquartered in Wolfsburg, Lower Saxony, Germany. Wolfsburg was founded as a purpose-built city to house the Volkswagen factory and workers in 1938. The city's economy remains closely tied to Volkswagen. The group also maintains significant administrative operations in other German cities and operates manufacturing facilities in more than 20 countries.

How many vehicles did Volkswagen Group sell in 2025?
Volkswagen Group delivered 8,983,900 vehicles worldwide in FY2025, down 0.5 percent from 9,026,681 in FY2024. Of these, 983,120 were all-electric vehicles (BEVs), up 32 percent from 744,571 in FY2024. The group delivered vehicles across twelve brands, with Skoda (up 12.7 percent) and SEAT/CUPRA (up 5.0 percent) as the growth brands, while Porsche (down 10.1 percent) and Audi (down 2.9 percent) saw declines.

Who owns Volkswagen Group?
Porsche Automobil Holding SE, the Porsche and Piech family holding company, holds approximately 53 percent of Volkswagen AG's ordinary shares and therefore effective voting control. The State of Lower Saxony holds approximately 20 percent of ordinary shares and has a statutory blocking minority under the VW Law. The remaining shares are held by institutional investors and public shareholders. Qatar Investment Authority is also a significant shareholder.

What is Volkswagen Group's financial performance?
For FY2025, Volkswagen Group reported sales revenue of EUR 321.9 billion (roughly flat versus EUR 324.7 billion in FY2024) and an operating result of EUR 8.9 billion (down 53 percent from EUR 19.1 billion). The operating margin was 2.8 percent, down from 5.9 percent. Earnings after tax were EUR 6.9 billion, down from EUR 12.4 billion. In Q1 2026, sales revenue was EUR 75.7 billion (down 2 percent) and the operating result was EUR 2.5 billion (down 14.3 percent), with an operating margin of 3.3 percent.

Volkswagen was founded in 1937 by the German Labour Front, a Nazi-era organization, with Ferdinand Porsche as the chief engineer. The original purpose was to produce an affordable "people's car" (Volkswagen in German) for ordinary German workers. The Volkswagen Beetle, designed by Porsche, became one of the most recognizable automobiles in history.

After World War II, the Volkswagen factory in Wolfsburg was placed under British military control before being transferred to the West German government in 1949. The Beetle became a global export success in the 1950s and 1960s, particularly in the United States, where it became a cultural icon associated with the counterculture movement.

Volkswagen acquired Auto Union (the predecessor of Audi) in 1965 and NSU Motorenwerke in 1969, merging them to form Audi NSU Auto Union AG, later renamed Audi AG. This acquisition gave Volkswagen access to Audi's engineering capabilities and front-wheel-drive technology.

The group's expansion into luxury and premium brands accelerated in the 1990s and 2000s under the leadership of Ferdinand Piech, who served as CEO from 1993 to 2002. Piech oversaw the acquisition of SEAT (1986, formalized under his tenure), Skoda (1991), Bentley (1998), Lamborghini (1998), and Bugatti (1998). The acquisitions of Bentley and Lamborghini in particular established Volkswagen Group as a force in the ultra-luxury automotive segment.

Volkswagen acquired a controlling stake in Scania in 2008 and MAN in 2011, creating a powerful commercial vehicle division. The group also acquired Ducati, the Italian motorcycle manufacturer, in 2012.

Porsche AG, the sports car manufacturer, had a complex relationship with Volkswagen Group for decades. Porsche Automobil Holding SE, the Porsche and Piech family holding company, had attempted to acquire Volkswagen AG in 2008 but was forced to abandon the effort due to financial difficulties. Volkswagen subsequently acquired a stake in Porsche AG, and in 2012 the two companies merged, with Porsche AG becoming a wholly owned subsidiary of Volkswagen AG.

In 2015, Volkswagen Group was engulfed in the "Dieselgate" emissions scandal, one of the largest corporate scandals in automotive history. The U.S. Environmental Protection Agency revealed that Volkswagen had installed software in its diesel vehicles that detected emissions tests and activated pollution controls only during testing, while allowing vehicles to emit up to 40 times the legal limit of nitrogen oxides during normal driving. The scandal affected approximately 11 million vehicles worldwide and resulted in more than $30 billion in fines, settlements, and remediation costs globally.

In 2023, Porsche AG was listed on the Frankfurt Stock Exchange in one of Europe's largest IPOs, raising approximately EUR 9.4 billion. Volkswagen AG retained a 75 percent stake in Porsche AG, while Porsche Automobil Holding SE acquired 25 percent of the ordinary shares.

In December 2024, Volkswagen reached an agreement with IG Metall to cut 35,000 jobs at the VW brand by 2030 in a "socially responsible manner," plus 15,000 additional jobs at other brands. The agreement averted mass strikes but represented one of the largest workforce reductions in German industrial history. Four German plants (Emden, Hanover, Zwickau, and Neckarsulm) were identified as lacking confirmed competitive use cases for the 2030s.

In FY2025, Volkswagen Group reported sales revenue of EUR 321.9 billion, roughly flat compared to EUR 324.7 billion in FY2024. However, the operating result fell 53 percent to EUR 8.9 billion, driven by EUR 4.7 billion in impairment losses at Porsche, EUR 2.9 billion in U.S. tariff impacts, and CO2 fleet regulation costs. The operating margin was 2.8 percent, down from 5.9 percent in FY2024. Earnings after tax were EUR 6.9 billion, down from EUR 12.4 billion.

In Q1 2026, sales revenue was EUR 75.7 billion (down 2 percent from EUR 77.6 billion in Q1 2025). The operating result was EUR 2.5 billion (down 14.3 percent), with an operating margin of 3.3 percent. Net cash flow in the Automotive Division reached EUR 2.0 billion, a significant improvement from negative EUR 0.8 billion in Q1 2025. The group reduced overhead costs by nearly EUR 1 billion and entered Q1 2026 as market leader in China.

In 2026, CEO Blume presented a comprehensive future plan with 12 initiatives, including streamlining the model lineup by up to 50 percent, reducing equipment option complexity by up to 75 percent, and targeting a production network capacity of approximately 9 million units per year. The 2030 target is an 8 to 10 percent operating return on sales. The group plans to launch over 20 new models in 2026.

Volkswagen Group has committed to carbon neutrality across its operations by 2050 and has implemented science-based targets for greenhouse gas emissions reduction. The company utilizes renewable energy sources in its manufacturing facilities and has achieved carbon neutrality for its European operations.

The group's BEV deliveries rose 32 percent to 983,120 units in FY2025, with European BEV deliveries up 66 percent. This represents progress toward the group's electrification targets, though profitability on electric vehicles remains lower than on internal combustion engine vehicles.

Volkswagen has developed battery recycling programs and works with recycling partners to recover materials for use in new vehicles. The company's design teams incorporate recyclability considerations into vehicle development. However, the group's battery business field has generated rising expenses that have weighed on earnings.

The group maintains strict environmental standards for its supply chain and implements responsible sourcing practices for raw materials. Volkswagen conducts regular audits of its manufacturing partners and provides training on environmental and labor practices.

Volkswagen Group is not a Certified B Corporation. The company publishes a sustainability report as part of its annual report.

On social responsibility, Volkswagen supports STEM education through partnerships and provides training programs for automotive technicians and engineers. The company maintains employee diversity and inclusion initiatives.

The group's operations in China, including a joint venture factory in Urumqi, Xinjiang, have been the subject of criticism from human rights organizations and some institutional investors regarding supply chain exposure to Xinjiang, where human rights concerns have been raised.

The 2015 Dieselgate emissions scandal remains the most significant controversy in Volkswagen Group's history. The U.S. Environmental Protection Agency's September 2015 notice of violation revealed that Volkswagen had installed defeat device software in approximately 11 million diesel vehicles worldwide. The scandal resulted in the resignation of CEO Martin Winterkorn and more than $30 billion in global fines, settlements, and remediation costs. Volkswagen pleaded guilty to criminal charges in the United States in 2017 and paid a $4.3 billion criminal fine.

The group's restructuring program has generated significant controversy in Germany. In December 2024, Volkswagen reached an agreement with IG Metall to cut 35,000 jobs at the VW brand by 2030, plus 15,000 at other brands. In 2026, CEO Blume confirmed in an internal memo that total job cuts could reach 100,000 globally, double the previously announced figure. The memo also confirmed that four German plants (Emden, Hanover, Zwickau, and Neckarsulm) lack competitive use cases for the 2030s. Widespread protests occurred at Volkswagen sites across Germany ahead of supervisory board meetings.

U.S. import tariffs imposed in April 2025 had a significant impact on the group's financial performance, contributing EUR 2.9 billion in additional expenses in FY2025. The tariffs particularly affected Audi and Porsche, which rely on exports from Europe to the U.S. market. The group has called for trade policy solutions but has also begun adjusting its production strategy to mitigate tariff impacts.

The group has faced scrutiny over its operations in China, including questions about supply chain exposure to Xinjiang. Volkswagen has maintained a joint venture factory in Urumqi, Xinjiang, which has been the subject of criticism from human rights organizations and some institutional investors. The company has reviewed its presence in Xinjiang but has not announced plans to exit the region.

CO2 fleet regulation in Europe has weighed on the group's earnings. The company has faced costs related to meeting European Union fleet emission targets, and the transition to electric vehicles has been accelerated by regulatory requirements. In Q1 2026, lower provisions related to CO2 regulation contributed to improved operating results at the Automotive Division.

Porsche's EUR 4.7 billion impairment loss in FY2025, related to adjusted product planning and goodwill write-downs, raised questions about the brand's strategy under Blume's dual leadership as CEO of both Volkswagen Group and Porsche AG. Some governance observers have called for separation of the two roles.