Vehicles inside an Autostadt Delivery Tower at the Volkswagen headquarters in Wolfsburg, Germany. (Krisztian Bocsi/Bloomberg)
January 21, 2026 3:48 PM, EST
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Volkswagen AG ended up with more cash in its automotive division than forecast in 2025 as the German carmaker delays projects and investments as part of a wide-ranging overhaul of its electric vehicle strategy.
Automotive net cash flow came in around 6 billion euros ($7 billion) for the full year, above the flat level the company had forecast, Volkswagen said Jan. 21. The cash boost lifted net liquidity in automotive to more than 34 billion euros, up from the roughly 30 billion euros the company expected.Â
The positive surprise was a result of factors including delayed payments to suppliers and reduced spending on equipment, tooling and research and development, the company said. VW’s premium brands, Porsche and Audi, have delayed several EV projects as part of a massive portfolio rethink after pouring billions of dollars into battery-centric models and supply chains.
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The loss of EV subsidies in the U.S., muted demand in Europe and the collapse of sales in China have forced Volkswagen’s stable of brands to walk back an aggressive electric portfolio strategy. VW, Porsche and Audi are cutting German production capacity and head count as they pivot to a more hybrids and combustion-engine vehicles.
The carmaker’s management is in the midst of poring over details of its five-year planning round, which has been reduced to 160 billion euros from 180 billion euros two years ago. The carmaker annually decides on how to divide up spending between factories, vehicle models and new technologies like software.Â
The plan is expected to be unveiled in March, when the company also publishes its annual financial results.Â
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