Annual Report 2025

Group Management Report

Business Development

(CONDENSED, IN ACCORDANCE WITH THE GERMAN COMMERCIAL CODE)

Vehicle Sales

Volkswagen AG sold a total of 2,147,032 (2,106,670) vehicles in fiscal year 2025. Vehicles sold abroad accounted for a share of 64.7 (64.2)%.

Production

Volkswagen AG manufactured a total of 836,623 vehicles (+8.3%) in the reporting year at its vehicle production plants in Wolfsburg, Hanover and Emden.

Total workforce

As of December 31, 2025, a total of 106,123 (112,091) people were employed at the sites of Volkswagen AG, excluding staff employed at subsidiaries; of this figure, 3,749 (4,057) were vocational trainees. A total of 7,602 (7,180) employees were in the passive phase of their partial retirement.

Female employees accounted for 19.3 (18.9)% of the workforce. Volkswagen AG employed 8,565 (7,913) part-time workers. The percentage of foreign employees was 6.3 (6.5)%. In the reporting year, 84.0 (83.2)% of the employees in Volkswagen AG’s production area had completed vocational or additional training. The proportion of graduates was 24.2 (23.5)% in the same year. In fiscal year 2025, the average age of the total workforce was 45.8 (45.3) years.

EMPLOYEE PAY AND BENEFITS AT VOLKSWAGEN AG

€ million

 

2025

 

%

 

2024

 

%

 

 

 

 

 

 

 

 

 

Direct pay including cash benefits

 

7,287

 

66.3

 

7,819

 

63.8

Social security contributions

 

1,520

 

13.8

 

1,600

 

13.1

Compensated absence

 

1,330

 

12.1

 

1,371

 

11.2

Retirement benefits

 

852

 

7.8

 

1,459

 

11.9

Total expense

 

10,990

 

100.0

 

12,249

 

100.0

Research and development

Volkswagen AG’s research and development costs as defined in the HGB amounted to €3.5 (4.3) billion in the reporting year. At the end of the reporting year, there were 14,985 (15,419) people employed in this division.

Business development of Volkswagen AG

As the parent of the Volkswagen Group, Volkswagen AG is in principle exposed to the same foreseeable developments, risks and opportunities. The forecast is explained in the chapter entitled “Report on Expected Developments” and the risks and opportunities in the chapter entitled “Report on Risks and Opportunities” of this combined management report.

Risks arising from financial instruments

The risks arising from the use of financial instruments are generally the same for Volkswagen AG as those for the Volkswagen Group. An explanation of these risks can be found in the chapter “Report on Risks and Opportunities” of this combined management report.

Dependent company report

The Board of Management of Volkswagen AG has submitted the report to the Supervisory Board as required by section 312 of the AktG and issued the following final statement on the matter:

“We declare that Volkswagen AG received appropriate consideration for every legal transaction with affiliated companies within the meaning of section 312 of the AktG in the period from January 1 to December 31, 2025. This assessment is based on the circumstances known to us at the time of the reportable transactions.”