Volkswagen AG announced on Friday that worldwide deliveries fell 8.6% in the second quarter, with a deep contraction in China erasing growth seen in other regions.
China, the company's largest single market, recorded a 36.6% decline in deliveries during the quarter. By contrast, Volkswagen logged a 7.7% increase in deliveries in North America and a 1.8% rise in Western Europe, according to the company's statement.
Addressing the performance in China, Marco Schubert, a member of Volkswagen's extended executive committee for sales, said: "The situation in China remains challenging, where we were unable to escape a significant total market decline of around 20 percent." That comment framed the company’s assessment that the weakness in China was broad-based and substantial.
Volkswagen is not alone among German manufacturers in seeing softer demand in China. The company joins other German brands that reported lower second-quarter deliveries amid intensifying competition from domestic rivals and an overall slowdown in Chinese demand. Mercedes-Benz, BMW and Porsche also recorded weaker deliveries in the quarter, citing heightened competition and subdued Chinese market appetite as factors.
The delivery shortfall arrives as Volkswagen considers a major restructuring intended to improve profitability. The proposal under review could remove about 100,000 positions, achieved through cuts to the model lineup and further reductions in production capacity. Management framed these measures as efforts to bolster margins, though no final decisions or timelines were disclosed in the company's statement.
Overall, the quarter’s numbers highlight a split regional performance: declines concentrated in China that outweighed modest gains in Western Europe and North America. Volkswagen's next steps on the contemplated overhaul will be watched closely by investors and by stakeholders in the automotive supply chain and labor markets.
Data cited: Global deliveries down 8.6% in Q2; China deliveries down 36.6%; North America up 7.7%; Western Europe up 1.8%. Company considering overhaul that could eliminate around 100,000 jobs.