Volkswagen Group’s recent second-quarter earnings decline has been attributed to a complex interplay of global challenges, according to CEO Oliver Blume. Speaking to “Bild am Sonntag”, Blume cited geopolitical crises, ongoing conflicts and the implementation of tariffs as significant factors impacting the company’s performance across the automotive sector.
While acknowledging the downturn, Blume emphasized that if the negative effects stemming from tariffs and ongoing restructuring efforts were excluded, the group’s financial results would appear considerably more robust. He stated that the second-quarter profit margin would then approximate 7%, representing the upper limit of projections.
Blume underscored the necessity for the German automotive industry to fundamentally evolve its business models, moving beyond the previously enjoyed conditions of relatively unrestricted global trade, consistent economic expansion and limited competitive pressures.
He affirmed the continued strength of the German automotive industry, citing both its inherent substance and the quality of its products. He noted that success ultimately remains within the industry’s control but highlighted the crucial role of government policy. Blume called for proactive measures including investment promotion, competitively priced energy, enhanced infrastructure, tax incentives and reduced bureaucracy. He expressed optimism regarding initial signals from the current coalition agreement and recognized Chancellor Merz’s government for establishing a potentially positive trajectory.
Looking ahead, Volkswagen intends to invest over €150 billion within the next five years. Blume positioned this substantial investment as a strong signal of commitment, benefitting Germany, Europe and the broader global economy, reinforcing the group’s resilience and ability to navigate current headwinds.