Volkswagen’s bottom line took a significant blow in 2024, with net profits plunging over 30% compared to the previous year. The German automaker reported that its operating profits fell 15.6%, landing at €19 billion, while after-tax earnings dropped even more sharply—down 30.4% to €12.4 billion.
“We’ve got strong brands, top-tier products, and a massive global presence,” VW’s finance chief Arno Antlitz said at the company’s Wolfsburg headquarters. “Yet, given these strengths, we can’t be satisfied with these financial results.” He pointed to economic uncertainties and the auto industry’s ongoing shift toward electrification—driven by EU regulations and penalties—as key hurdles.
Volkswagen attributed its profit slump to rising operational costs and sluggish sales, particularly in China. In 2024, vehicle sales slipped by 3.5%, production fell 3.8%, and overall deliveries dipped by 2.3% compared to the previous year. Despite these setbacks, revenue managed a slight 0.7% uptick, reaching €324.6 billion.
With expenses mounting, VW has already been making tough calls, including plans for factory closures and wage cuts. Still, employees covered by collective bargaining agreements will receive nearly €4,800 in bonuses for 2024—though that figure will shrink next year.
Under a deal struck last December, bonus payouts will be significantly scaled back. In 2026 and 2027, only a fixed advance payment of around €1,900—typically issued in November—will remain, while the flexible portion paid in May will be suspended for two years. The company intends to gradually restore bonuses starting in 2028, returning to full levels by 2031.
In a rare corporate gesture, VW’s top brass is also taking a financial hit. CEO Oliver Blume and fellow board members have volunteered to forgo 11% of their salaries in 2025 and 2026, a move confirmed by the company’s Supervisory Board.
As Volkswagen navigates these financial headwinds, it’s clear that the road ahead won’t be an easy one.
