Volkswagen to Accelerate Turnaround Plans as Challenges Mount

Volkswagen said it will accelerate its turnaround as global headwinds mount, targeting a further reduction of 1 million units of manufacturing capacity while reaffirming guidance. The automaker reported a 2.5% drop in first-quarter revenue, backed its full-year target for an operating margin of 4%–5.5% (up from 2.8% in 2025) and reiterated a longer-term ambition of 8%–10% margin by 2030. Management cited tariffs, intensifying competition in China and rising export pressure into Europe as key challenges. The moves underscore potential continued pressure on European auto names and could weigh on the Germany 40 index, even as VW seeks to reassure investors by sticking to its targets.