Volkswagen's profits plummet 44% as mobility division shines amid restructuring fears
Volkswagen Group has faced a challenging year, with after-tax profits falling by 44% to €6.9 billion in 2025. Despite this, its Group Mobility division—a key finance and mobility arm—reported a 15% rise in operating profit, reaching €3.45 billion.
The company's stock price also dipped slightly, closing at €88.92 on XETRA, a drop of 0.65% as investors watch closely for further movements.
The Group Mobility division has become a bright spot for Volkswagen, handling nearly 70% of all VW vehicle deliveries in Germany. Electric models make up 82% of these sales, signalling strong demand in the shifting market. Anthony Bandmann, the division's new head, expects operating profits to climb significantly in 2026.
Elsewhere, the group struggles with transformation costs, weak sales, and warnings of potential plant closures. A McKinsey report outlined an extreme scenario where eight of VW's ten German plants could shut down. Only Wolfsburg headquarters and Audi's Ingolstadt facility might remain operational, leaving sites like Zwickau, Emden, and Neckarsulm at risk.
Analysts note that VW's stock is testing a critical support level. A breakdown could lead to further selling pressure, adding to investor concerns. Yet, some see the company's low price-to-earnings ratio and high dividend yield as an attractive value opportunity in the current market.
Volkswagen's Group Mobility division continues to perform well, offsetting broader challenges across the company. With plant closures looming and profits under pressure, the coming year will be crucial for VW's restructuring efforts. Investors are now watching whether the stock can hold its support level or face further declines.
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