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Volkswagen Beats Zero Cash Flow Target
22 Jan
Summary
- Volkswagen's automotive division achieved 6 billion euros in net cash flow last year.
- The company exceeded its previous guidance of zero net cash flow.
- VW expects to save €1 billion annually by streamlining mass-market brands.
Volkswagen's core automotive division achieved approximately 6 billion euros ($7.01 billion) in net cash flow last year, a notable turnaround from its earlier guidance of zero. This positive financial performance in 2025 was attributed to lower-than-anticipated expenditures on capital projects, research and development, and improved working capital management.
As of the end of 2025, Volkswagen's net cash reserves exceeded 34 billion euros, surpassing the projected 30 billion euros. This financial strength comes as the company navigates pressures from electric vehicle competition and international trade dynamics. Volkswagen is also implementing a five-year plan that includes a capital spending reduction to €160 billion.
Furthermore, Volkswagen aims to achieve annual production cost savings of €1 billion by 2030 through the streamlining of its mass-market brand management. These initiatives reflect Volkswagen's commitment to enhancing operational efficiency and financial resilience.
