Volkswagen upset that electric vehicles are gaining increasing interest. 40 percent of orders were not scheduled until 2029

Volkswagen revealed that as of the end of September, 40 percent of its order backlog [not including already sold units – edit] consisted of electric models, with 150,000 orders related to small electric vehicles based on the MEB+ platform (VW ID. Polo, Skoda Epiq, Cupra Raval, VW ID. Cross). The group’s chief financial officer, Arno Antlitz, did not hide that this would reduce the company’s revenue because margins on electric vehicles are lower. A 40 percent share was only projected for 2029, with satisfactory cash flows from BEVs expected by 2030.

Volkswagen in huge deficit, but better financial flows behind the scenes

In the third quarter of 2026, Volkswagen incurred a loss of 5.82 billion euros. After 9 months during which a total of 5.9 million cars were delivered, generating 233.4 billion euros in revenue for the company, the operating result was only slightly above zero at 100 million euros, representing a year-on-year decline of 98.7 percent. The operating margin was 3.8 percent. Financial provisions weighed heavily on the group, including 6.4 billion euros spent by Porsche under the goodwill program to address potential customer claims.

This is not the best indication of the quality of Porsche’s cars...

The Porsche Taycan was praised for its performance and fast charging speed, but it spent a lot of time in service centers due to various issues.

On the other hand, net free cash flow in the latest quarter was 4.4 billion euros (source), representing a 145 percent increase compared to the same period last year. This means Volkswagen is writing off losses and resolving problems this fiscal year in order to start the new one with fewer burdens, as it faces further challenges in the Chinese and American markets.

The Group’s chief financial officer is concerned about growing interest in electric vehicles. If sales of these vehicles keep up with orders, the company’s margins will decline. The firm needs them to balance out the sale of internal combustion engine vehicles, but such a high proportion was only planned for three years later. Therefore, we won’t be surprised if the company begins to pressure dealers to sell more internal combustion engine vehicles, something some analysts might label as the “end of electric vehicles.”

From January to the end of September, the battery segment (PowerCo) resulted in an operating loss of 1.05 billion euros, with only Cariad among the standalone companies performing worse (-1.32 billion euros).

Li-ion cell production at the PowerCo factory

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