Volkswagen AG has revised its financial forecast for 2025 following strategic changes at Dr. Ing. h.c. F. Porsche AG, including revised medium-term ambitions and adjustments to joint product planning.
Porsche has informed Volkswagen that it is revising its Group return on sales target for the 2026-2030 planning period from the original 15-17% range to a more conservative 10-15%.
As part of its updated product strategy, Porsche is discontinuing a collaborative vehicle project with Volkswagen in its original form and will pursue greater drivetrain flexibility. These changes have led to write-downs on capitalized project costs and additional provisions, prompting Porsche to revise its 2025 Group operating return on sales forecast to a range of slightly positive to 2%, down from the previously expected 5-7%.
Volkswagen said it will recognize a non-cash impairment charge of approximately 3 billion euros on the goodwill allocated to the Porsche business segment, impacting its operating result in the current year. Additionally, the revised Porsche forecast and the ripple effects from the abandoned vehicle project will result in a one-off negative impact of around 2.1 billion euros on Volkswagen's 2025 operating result.
Combined, these factors are expected to reduce Volkswagen Group's operating result by roughly 5.1 billion euros in the 2025 fiscal year. Consequently, Volkswagen now anticipates an operating return on sales of 2-3%, previously 4-5%; net cash flow in the Automotive division of around 0 billion euros, previously 1 billion euros -3 billion euros; and net liquidity of approximately 30 billion euros, previously 31 billion euros -33 billion euros. The Group's sales revenue forecast remains unchanged, expected to match the previous year's level.
Volkswagen AG will publish its interim financial statements for the period ending September 30, 2025, on October 30, 2025.
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