Volkswagen has reported better-than-expected net cash flow in 2025 of €6 billion, despite Europe's largest carmaker struggling with weak China sales, US tariff worries and difficulties at luxury sports brand Porsche.
The net cash flow was €1 billion higher than the previous fiscal year and contrasted with the company's expectations of around zero net cash flow.
According to a spokesperson, the higher cash flow is due to Volkswagen reducing its inventories towards the end of the year. Investments in both plants and research and development were also lower than initially anticipated.
According to preliminary figures, the investment ratio in the automotive business was 12% of revenue, compared to 14.3% in 2024.
Chief Financial Officer Arno Antlitz plans to further reduce investment in the coming years.
Porsche AG in September dialled back plans for its electric vehicle rollout due to weaker demand, pressure in key market China and higher US tariffs, causing the sports car maker and parent Volkswagen to slash their 2025 profit outlooks.
