Annual Report 2025

Notes

Basis of consolidation

In addition to Volkswagen AG, the consolidated financial statements comprise all significant German and non-German subsidiaries, including structured entities that are controlled directly or indirectly by Volkswagen AG. The structured entities are used primarily to enter into asset-backed securities transactions to refinance the financial services business and to invest surplus liquidity in special securities funds.

Subsidiaries whose business is dormant or insignificant, both individually and in the aggregate, for the fair presentation of the net assets, financial position and results of operations and of the cash flows of the Volkswagen Group are not consolidated. They are carried in the consolidated financial statements at cost net of any impairment losses and reversals of impairment losses required to be recognized.

Significant companies where Volkswagen AG is able, directly or indirectly, to significantly influence financial and operating policy decisions (associates), or that are directly or indirectly jointly controlled (joint ventures), are accounted for using the equity method. Joint ventures also include companies in which the Volkswagen Group holds the majority of voting rights, but whose articles of association or partnership agreements stipulate that important decisions may only be resolved unanimously. Insignificant associates and joint ventures are carried at cost net of any impairment losses and reversals of impairment losses required to be recognized.

The composition of the Volkswagen Group is shown in the following table:

Basis of consolidation

 

 

2025

 

2024

 

 

 

 

 

Volkswagen AG and consolidated subsidiaries

 

 

 

 

Germany

 

148

 

141

Abroad

 

755

 

805

Subsidiaries carried at cost

 

 

 

 

Germany

 

88

 

90

Abroad

 

268

 

269

At equity accounted associates and joint ventures and at fair value accounted other equity investments

 

 

 

 

Germany

 

50

 

54

Abroad

 

117

 

124

Associates and joint ventures carried at cost

 

 

 

 

Germany

 

48

 

51

Abroad

 

51

 

54

 

 

1,525

 

1,588

The list of all shareholding, which forms part of the annual financial statements of Volkswagen AG, can be downloaded from the electronic company register at www.unternehmensregister.de/en and from www.volkswagen-group.com/Financial-Reports.

The following consolidated German subsidiaries with the legal form of a corporation or partnership have met the criteria set out in section 264(3) or section 264b of the Handelsgesetzbuch (HGB – German Commercial Code) and have as far as possible exercised the option not to publish annual financial statements:

  • Audi Berlin GmbH, Berlin
  • Audi Frankfurt GmbH, Frankfurt am Main
  • Audi Hamburg GmbH, Hamburg
  • Audi Hannover GmbH, Hanover
  • Audi Leipzig GmbH, Leipzig
  • Audi Sport GmbH, Neckarsulm
  • Audi Stuttgart GmbH, Stuttgart
  • Auto & Service PIA GmbH, Munich
  • Autostadt GmbH, Wolfsburg
  • Bugatti Engineering GmbH, Wolfsburg
  • CARIAD SE, Wolfsburg
  • dx.one GmbH, Wolfsburg
  • Eberhardt Kraftfahrzeug GmbH + Co. KG, Ulm
  • GETAS Verwaltung GmbH & Co. Objekt Heinrich-von-Buz-Straße KG, Pullach i. Isartal
  • HABAMO Verwaltung GmbH & Co. Objekt Sterkrade KG, Pullach i. Isartal
  • Haberl Beteiligungs-GmbH, Munich
  • Held & Ströhle GmbH & Co. KG, Ulm
  • MAHAG Automobilhandel und Service GmbH & Co. oHG, Munich
  • MAHAG GmbH, Munich
  • MAHAG Sportwagen Zentrum Albrechtstraße GmbH, Munich
  • MOIA GmbH, Berlin
  • MOIA Operations Germany GmbH, Hanover
  • Porsche Holding Stuttgart GmbH, Stuttgart
  • Porsche Niederlassung Mannheim GmbH, Mannheim
  • PSW automotive engineering GmbH, Gaimersheim
  • PZ Leipzig GmbH, Leipzig
  • Quest One GmbH, Augsburg
  • Schwaba GmbH, Augsburg
  • SEAT Deutschland Niederlassung GmbH, Weiterstadt
  • SKODA AUTO Deutschland GmbH, Weiterstadt
  • SZM Sportwagen Zentrum München GmbH, Munich
  • VfL Wolfsburg-Fußball GmbH, Wolfsburg
  • VGRB GmbH, Berlin
  • VGRD GmbH, Wolfsburg
  • VGRDD GmbH, Dresden
  • VGRHH GmbH, Hamburg
  • Volkswagen AirService GmbH, Braunschweig
  • Volkswagen Automobile Berlin GmbH, Berlin
  • Volkswagen Automobile Chemnitz GmbH, Chemnitz
  • Volkswagen Automobile Frankfurt GmbH, Frankfurt am Main
  • Volkswagen Automobile Hamburg GmbH, Hamburg
  • Volkswagen Automobile Hannover GmbH, Hanover
  • VOLKSWAGEN Automobile Leipzig GmbH, Leipzig
  • Volkswagen Automobile Rhein-Neckar GmbH, Mannheim
  • Volkswagen Automobile Stuttgart GmbH, Stuttgart
  • Volkswagen Autonomous Mobility GmbH, Hanover
  • Volkswagen Deutschland GmbH & Co. KG, Wolfsburg
  • Volkswagen Deutschland Verwaltungs GmbH, Wolfsburg
  • Volkswagen Gebrauchtfahrzeughandels und Service GmbH, Langenhagen
  • Volkswagen Group AI Lab GmbH, Wolfsburg
  • Volkswagen Group Beteiligungen GmbH, Wolfsburg
  • Volkswagen Group Digital Solutions GmbH, Wolfsburg
  • Volkswagen Group Services GmbH, Wolfsburg
  • Volkswagen Immobilien GmbH, Wolfsburg
  • Volkswagen Infotainment GmbH, Wolfsburg
  • Volkswagen Konzernlogistik GmbH & Co. OHG, Wolfsburg
  • Volkswagen Leasingobjekt GmbH, Braunschweig
  • Volkswagen Original Teile Logistik, Vertrieb und Services GmbH, Baunatal
  • Volkswagen Osnabrück GmbH, Osnabrück
  • Volkswagen Software Asset Management GmbH, Wolfsburg
  • Volkswagen Vermögensverwaltungs-GmbH, Wolfsburg
  • Volkswagen Zubehör GmbH, Dreieich

CONSOLIDATED SUBSIDIARIES

The fiscal year’s changes in the consolidated Group are shown in the following table:

Changes in the basis of consolidation

Number

 

Germany

 

Abroad

 

 

 

 

 

Initially consolidated

 

 

 

 

Subsidiaries previously carried at cost

 

5

 

15

Newly acquired subsidiaries

 

3

 

7

Newly formed subsidiaries

 

1

 

11

Other

 

–

 

1

 

 

9

 

34

Deconsolidated

 

 

 

 

Mergers

 

1

 

48

Liquidations

 

1

 

16

Sales/other

 

–

 

20

 

 

2

 

84

The initial consolidation or deconsolidation of these subsidiaries, either individually or collectively, did not have a significant effect on the presentation of the net assets, financial position and results of operations, or on the cash flows. The unconsolidated structured entities are immaterial from a Group perspective. In particular, they do not give rise to any significant risks to the Group.

INVESTMENTS IN ASSOCIATES

From a Group perspective, the associates QuantumScape Corporation, San José/USA (QuantumScape), Gotion High-Tech Co., Ltd., Hefei/China (Gotion) and Sinotruk (Hong Kong) Ltd., Hong Kong/China (Sinotruk), were material as of the balance sheet date.

QuantumScape

QuantumScape is a US-based start-up for solid-state lithium-metal batteries. An agreement to industrialize QuantumScape’s next-generation solid-state lithium-metal technology exists between Group companies and QuantumScape. QuantumScape’s principal place of business is in San José/USA.

As of December 31, 2025, the quoted market price of the shares in QuantumScape amounted to €0.8 billion (previous year: €0.4 billion).

Gotion

Gotion is a Chinese technology company that engages primarily in research and development, production and sales of lithium-ion batteries and in electric transmission and transformation businesses. Group companies and Gotion have agreed upon a strategic framework for cooperation in the development, manufacture and distribution of battery cells. Gotion’s principal place of business is in Hefei/China.

As of December 31, 2025, the quoted market price of the shares in Gotion amounted to €2.1 billion (previous year: €1.2 billion).

Sinotruk

Sinotruk is one of the largest truck manufacturers in the Chinese market. Sinotruk’s principal place of business is in Hong Kong/China.

As of December 31, 2025, the quoted market price of the shares in Sinotruk amounted to €2.1 billion (previous year: €1.9 billion).

SUMMARIZED FINANCIAL INFORMATION ON MATERIAL ASSOCIATES ON A 100% BASIS

€ million

 

QuantumScape1

 

Gotion1

 

Sinotruk2

 

 

 

 

 

 

 

2025

 

 

 

 

 

 

Equity interest in %

 

14

 

24

 

25

 

 

 

 

 

 

 

Non-current assets

 

424

 

9,125

 

5,352

Current assets

 

865

 

6,420

 

11,345

Non-current liabilities

 

106

 

3,126

 

189

Current liabilities

 

41

 

7,485

 

10,403

Net assets (including non-controlling interests)

 

1,142

 

4,935

 

6,104

 

 

 

 

 

 

 

Sales revenue

 

–

 

4,797

 

12,371

Earnings after tax from continuing operations

 

−433

 

61

 

867

Earnings after tax from discontinued operations

 

–

 

–

 

–

Other comprehensive income

 

0

 

−28

 

−7

Total comprehensive income

 

−433

 

34

 

861

Dividends received3

 

–

 

5

 

94

2024

 

 

 

 

 

 

Equity interest in %

 

16

 

24

 

25

 

 

 

 

 

 

 

Non-current assets

 

553

 

8,479

 

4,922

Current assets

 

763

 

6,110

 

12,144

Non-current liabilities

 

137

 

3,408

 

174

Current liabilities

 

54

 

6,631

 

10,708

Net assets (including non-controlling interests)

 

1,124

 

4,550

 

6,183

 

 

 

 

 

 

 

Sales revenue

 

–

 

4,347

 

11,893

Earnings after tax from continuing operations

 

−442

 

−69

 

874

Earnings after tax from discontinued operations

 

–

 

–

 

–

Other comprehensive income

 

7

 

−112

 

−4

Total comprehensive income

 

−436

 

−180

 

870

Dividends received3

 

–

 

6

 

138

1

Balance sheet amounts refer to the September 30 reporting date and income statement amounts refer to the period from October 1 to September 30. The disclosures are presented after the purchase price adjustment.

2

Balance sheet amounts refer to the June 30 reporting date and income statement amounts refer to the period from July 1 to June 30.

3

Proportionate dividends are shown net of withholding tax.
RECONCILIATION OF THE FINANCIAL INFORMATION TO THE CARRYING AMOUNT OF THE EQUITY-ACCOUNTED INVESTMENTS

€ million

 

QuantumScape1

 

Gotion1

 

Sinotruk3

 

 

 

 

 

 

 

2025

 

 

 

 

 

 

Net assets at January 1 (including non-controlling interests)

 

1,124

 

4,550

 

6,183

Profit or loss

 

−433

 

61

 

867

Other comprehensive income

 

0

 

−28

 

−7

Changes in share capital

 

0

 

3

 

–

Changes in reserves

 

495

 

53

 

−23

Foreign exchange differences

 

−44

 

−252

 

−42

Dividends2

 

–

 

−21

 

−843

Other changes

 

–

 

568

 

−32

Net assets at December 31 (including non-controlling interests)

 

1,142

 

4,935

 

6,104

Net assets at December 31 (excluding non-controlling interests)

 

1,142

 

4,229

 

5,146

Proportionate equity (excluding non-controlling interests)

 

162

 

1,027

 

1,299

Consolidation/Goodwill/Others

 

580

 

−274

 

−261

Carrying amount of equity-accounted investments

 

742

 

753

 

1,038

2024

 

 

 

 

 

 

Net assets at January 1 (including non-controlling interests)

 

1,466

 

4,668

 

5,669

Profit or loss

 

−442

 

−69

 

874

Other comprehensive income

 

7

 

−112

 

−4

Changes in share capital

 

0

 

2

 

–

Changes in reserves

 

155

 

127

 

−133

Foreign exchange differences

 

−62

 

−43

 

82

Dividends2

 

–

 

−23

 

−375

Other changes

 

–

 

–

 

70

Net assets at December 31 (including non-controlling interests)

 

1,124

 

4,550

 

6,183

Net assets at December 31 (excluding non-controlling interests)

 

1,124

 

4,371

 

5,193

Proportionate equity (excluding non-controlling interests)

 

179

 

1,069

 

1,311

Consolidation/Goodwill/Others

 

269

 

−275

 

−362

Carrying amount of equity-accounted investments

 

448

 

794

 

949

1

The disclosures are presented after the purchase price adjustment.

2

Dividends are shown before withholding tax.

3

Prior-year figures adjusted.
SUMMARIZED FINANCIAL INFORMATION ON INDIVIDUALLY IMMATERIAL ASSOCIATES ON THE BASIS OF THE VOLKSWAGEN GROUP’S PROPORTIONATE INTEREST

€ million

 

2025

 

2024

 

 

 

 

 

Earnings after tax from continuing operations

 

−4

 

−507

Earnings after tax from discontinued operations

 

–

 

–

Other comprehensive income

 

−13

 

−14

Total comprehensive income

 

−17

 

−521

Carrying amount of equity-accounted investments

 

2,480

 

2,381

There are no unrecognized losses (previous year: €636 million) relating to investments in associates in the current fiscal year. Financial guarantees have been issued to associates in an amount of €2 million (previous year: €1 million).

INTERESTS IN JOINT VENTURES

From a Group perspective, the joint ventures FAW-Volkswagen Automotive Company Ltd., Changchun/China, SAIC-Volkswagen Automotive Company Ltd., Shanghai/China, and SAIC-Volkswagen Sales Company Ltd., Shanghai/China, were material at the reporting date.

FAW-Volkswagen Automotive Company

FAW-Volkswagen Automotive Company develops, produces and sells passenger cars. There is an agreement in place between Group companies and the joint venture partner China FAW Corporation Limited regarding a long-term strategic partnership. The principal place of business is in Changchun/China.

SAIC-Volkswagen Automotive Company

SAIC-Volkswagen Automotive Company develops and produces passenger cars. There is an agreement in place between Group companies and the joint venture partner Shanghai Automotive Industry Corporation regarding a long-term strategic partnership. The principal place of business is in Shanghai/China.

SAIC-Volkswagen Sales Company

SAIC-Volkswagen Sales Company sells passenger cars for SAIC-Volkswagen Automotive Company. There is an agreement in place between Group companies and the joint venture partner Shanghai Automotive Industry Corporation regarding a long-term strategic partnership. The principal place of business is in Shanghai/China.

SUMMARIZED FINANCIAL INFORMATION ON THE MATERIAL JOINT VENTURES ON A 100% BASIS

€ million

 

FAW-Volkswagen Automotive Company

 

SAIC Volkswagen Automotive Company1

 

SAIC-Volkswagen Sales Company

 

 

 

 

 

 

 

2025

 

 

 

 

 

 

Equity interest in %

 

40

 

50

 

48

 

 

 

 

 

 

 

Non-current assets

 

8,540

 

6,113

 

728

Current assets

 

13,316

 

7,059

 

2,696

of which cash and cash equivalents

 

8,063

 

1,931

 

250

Non-current liabilities

 

621

 

1,897

 

58

of which financial liabilities2

 

7

 

2

 

1

Current liabilities

 

15,551

 

9,480

 

3,325

of which financial liabilities2

 

3

 

1,334

 

–

Net assets (including non-controlling interests)

 

5,685

 

1,796

 

40

 

 

 

 

 

 

 

Sales revenue

 

33,588

 

14,208

 

15,184

Depreciation and amortization

 

1,719

 

1,330

 

11

Interest income

 

111

 

22

 

3

Interest expenses

 

2

 

30

 

1

Earnings before tax from continuing operations

 

2,625

 

277

 

35

Income tax expense

 

594

 

39

 

7

Earnings after tax from continuing operations

 

2,031

 

238

 

28

Earnings after tax from discontinued operations

 

–

 

–

 

–

Other comprehensive income

 

64

 

1

 

–

Total comprehensive income

 

2,095

 

239

 

28

Dividends received3

 

818

 

266

 

22

2024

 

 

 

 

 

 

Equity interest in %

 

40

 

50

 

30

 

 

 

 

 

 

 

Non-current assets

 

9,124

 

6,390

 

809

Current assets

 

13,162

 

7,568

 

3,161

of which cash and cash equivalents

 

8,773

 

2,167

 

262

Non-current liabilities

 

726

 

1,859

 

102

of which financial liabilities2

 

9

 

2

 

3

Current liabilities

 

15,189

 

9,740

 

3,775

of which financial liabilities2

 

61

 

1,346

 

–

Net assets (including non-controlling interests)

 

6,372

 

2,359

 

93

 

 

 

 

 

 

 

Sales revenue

 

39,166

 

17,293

 

19,012

Depreciation and amortization

 

1,900

 

1,205

 

11

Interest income

 

170

 

28

 

4

Interest expenses

 

1

 

29

 

1

Earnings before tax from continuing operations

 

3,301

 

686

 

100

Income tax expense

 

658

 

95

 

22

Earnings after tax from continuing operations

 

2,643

 

591

 

78

Earnings after tax from discontinued operations

 

–

 

–

 

–

Other comprehensive income

 

−108

 

4

 

–

Total comprehensive income

 

2,535

 

596

 

78

Dividends received3

 

1,787

 

190

 

96

1

SAIC-Volkswagen Sales Company sells passenger cars for SAIC-Volkswagen Automotive Company. Therefore, the sales revenue reported for SAIC-Volkswagen Automotive Company was mostly generated from its business with SAIC-Volkswagen Sales Company.

2

Excluding trade liabilities.

3

Proportionate dividends are shown net of withholding tax.
RECONCILIATION OF THE FINANCIAL INFORMATION TO THE CARRYING AMOUNT OF THE EQUITY-ACCOUNTED INVESTMENTS

€ million

 

FAW-Volkswagen Automotive Company

 

SAIC Volkswagen Automotive Company

 

SAIC-Volkswagen Sales Company

 

 

 

 

 

 

 

2025

 

 

 

 

 

 

Net assets at January 1 (including non-controlling interests)

 

6,372

 

2,359

 

93

Profit or loss

 

2,031

 

238

 

28

Other comprehensive income

 

64

 

1

 

–

Changes in share capital

 

–

 

–

 

–

Changes in reserves

 

−356

 

−63

 

–

Foreign exchange differences

 

−453

 

−185

 

−7

Dividends1

 

−2,148

 

−554

 

−74

Other changes

 

175

 

–

 

–

Net assets at December 31 (including non-controlling interests)

 

5,685

 

1,796

 

40

Net assets at December 31 (excluding non-controlling interests)

 

5,510

 

1,796

 

40

Proportionate equity (excluding non-controlling interests)

 

2,204

 

898

 

19

Consolidation/Goodwill/Others

 

−762

 

−829

 

53

Carrying amount of equity-accounted investments

 

1,442

 

69

 

72

2024

 

 

 

 

 

 

Net assets at January 1 (including non-controlling interests)

 

8,276

 

2,088

 

329

Profit or loss

 

2,643

 

591

 

78

Other comprehensive income

 

−108

 

4

 

–

Changes in share capital

 

–

 

–

 

–

Changes in reserves

 

–

 

–

 

–

Foreign exchange differences

 

228

 

71

 

6

Dividends1

 

−4,666

 

−396

 

−320

Net assets at December 31 (including non-controlling interests)

 

6,372

 

2,359

 

93

Proportionate equity (excluding non-controlling interests)

 

2,549

 

1,180

 

28

Consolidation/Goodwill/Others

 

−776

 

−882

 

–

Carrying amount of equity-accounted investments

 

1,772

 

297

 

28

1

Dividends are shown before withholding tax.
SUMMARIZED FINANCIAL INFORMATION ON INDIVIDUALLY IMMATERIAL JOINT VENTURES ON THE BASIS OF THE VOLKSWAGEN GROUP’S PROPORTIONATE INTEREST

€ million

 

2025

 

2024

 

 

 

 

 

Earnings after tax from continuing operations

 

−52

 

−141

Earnings after tax from discontinued operations

 

–

 

–

Other comprehensive income

 

−47

 

62

Total comprehensive income

 

−99

 

−79

Carrying amount of equity-accounted investments

 

3,400

 

3,600

The carrying amount of equity-accounted investments includes the equity investment in Green Mobility Holding S.A., Strassen/Luxembourg.

There are unrecognized losses of €331 million (previous year: €−million) relating to investments in joint ventures in the current fiscal year. Contingent liabilities to joint ventures amounted to €61 million (previous year: €228 million); there were no financial guarantees (previous year: €−million). Cash funds of joint ventures amounting to €161 million (previous year: €162 million) are deposited as collateral for asset-backed securities transactions and are therefore not freely available.

Related links