Volkswagen Group, one of the world's largest car manufacturers, is facing a serious financial crisis. According to information from the German newspaper Bild, the company lacks about 11 billion euros, which are needed to ensure its smooth operation and vital investments next year.
These funds are key to launching new models on the market, especially in the electric vehicle segment, investing in innovative technologies and digitalization, and modernizing production lines to meet the requirements of the electric age.
The financial condition of the group, which includes prestigious brands such as Volkswagen, Porsche, Audi, Skoda, SEAT and Bentley, is causing serious concern among analysts. The deterioration in the Porsche division, which has gone from profitable to unprofitable, is particularly worrying. Amid these problems, CEO Oliver Blume has resigned.
Volkswagen's management has taken drastic measures in response to the financial challenges, including large-scale layoffs of a large number of employees, as well as cuts in marketing, sales and investment costs.
These measures are aimed at reducing costs and increasing operational efficiency. However, economists warn that such actions may not be enough to permanently stabilize the situation, as the 11 billion euro shortfall will leave the company without the necessary funds for development in 2026.
To overcome the crisis, Volkswagen is considering selling some of its assets. Among those being discussed for sale are Everllence (formerly MAN Energy) - an engine manufacturing company, as well as Italdesign and IAV - engineering and design companies within the group.
In addition, new investors and sources of capital are being sought to support key projects. But experts warn that a further deterioration in the group's financial results risks a downgrade of its credit rating.
This would make raising debt more difficult and expensive, with the potential negative consequences affecting all Volkswagen Group subsidiaries. The crisis calls into question the German giant's ability to maintain the pace of investment needed to successfully transition to electric mobility.