Volkswagen sells more sausages than cars as profits slump

Volkswagen Group’s latest financial results reveal an unconventional yet intriguing highlight. Despite a challenging year that saw a significant 30.4% drop in profits after tax for 2024, the German automaker sold a record-breaking 8.5 million currywurst sausages — 200,000 more than the previous year.

The company, which operates leading brands such as Audi, Porsche, and Skoda, delivered just 5.2 million vehicles over the same period. While this figure underscores a slump in Volkswagen’s core automotive business, sausage sales have emerged as a surprising success story, driven by their popularity in Germany and abroad. Volkswagen originally began producing the currywurst in 1973, primarily to supply its factory canteens, but the snack has since grown into an unlikely international bestseller. The sausages are now sold to supermarkets and other firms in 12 countries.

Currywurst, a German culinary staple made up of sausages topped with curry-spiced ketchup and served with fries, has long been celebrated as a part of the country’s cultural identity. Volkswagen’s version, often referred to as an “icon” by executives, has gained near-legendary status. Beyond satisfying production workers at factory sites, it has found a loyal customer base far outside its initial market. After a brief period in 2021 when meatless options replaced currywurst in one of Volkswagen’s canteens, the dish returned triumphantly by 2023 following widespread criticism, including from former German Chancellor Gerhard Schröder.

The automaker’s financial troubles, however, cannot be masked by its record sausage sales. The group faced difficult trading conditions throughout the year, most notably in China, where deliveries fell to their lowest level in over a decade. Despite the overall growth in China’s car market, competitors such as BYD have outpaced Volkswagen with affordable electric vehicle offerings. As a result, Volkswagen faced discussions over potential factory closures in Germany and confirmed plans to cut 35,000 jobs over upcoming years.

Deepening the challenges, geopolitical uncertainty and stiffer competition contributed to the company’s underwhelming performance. Nonetheless, Volkswagen has announced an optimistic target of over 5% revenue growth in 2025, aiming to stabilise its position in a competitive market. Additionally, plans were unveiled to release the group’s most affordable electric car to date, expected to hit markets in 2027 with a retail price of €20,000.

As the company awaits recovery, its leadership has sought to share the financial burden. Executive board members recently agreed to an 11% pay cut over the next two years. For now, while Volkswagen struggles to navigate shifting trends in the automotive industry, its currywurst remains a curious symbol of resilience and success.