Volkswagen Pauses Work on ID.Golf Model to Preserve Cash Flow

By Michael Hennessey

Volkswagen said it paused development on its ID.Golf model to preserve cash flow as it reported lower profit amid deteriorating market conditions.

The automaker's brand group core, representing Volkswagen cars and commercial vehicles along with the Skoda and Seat/Cupra brands, said its operating result for the nine-month period fell 8.3% on year to 4.33 billion euros ($4.84 billion). Its operating margin slimmed to 4.1% from 4.4%.

Revenue fell 0.5% to 106.42 billion euros, as vehicle sales dropped to 3.75 million from 3.77 million.

The company said it is working to safeguard net cash flow, and will temporarily pause development work on the future ID.Golf at the Volkswagen brand until it can "securely accommodate the necessary investments."

"The market environment remains extremely challenging--and special items are weighing on our result," said David Powels, chief financial officer of the Volkswagen brand and brand group core.

The company cited exceptional costs from restructuring expenses, the planned sale of the Volkswagen Osnabrueck plant, and the discontinuation of ID.4 production in Chattanooga in the U.S.

Volkswagen also noted higher competition, increased costs on sales incentives and negative mix effects during the period.

Write to Michael Hennessey at michael.hennessey@wsj.com

(END) Dow Jones Newswires

October 30, 2026 06:05 ET (10:05 GMT)