Volkswagen reports €5.8 billion third-quarter loss as Porsche charge and China slump weigh

Volkswagen reported a €5.8 billion loss for the July-to-September quarter on Thursday, 29 October, DW reported, as a large charge linked to Porsche and weaker demand in China weighed on the German carmaker. The result deepens pressure on a group already cutting costs and facing stronger competition in a market that had been a major source of profit.

The loss compares with just over €1.07 billion in the same quarter a year earlier, according to DW. dpa put the latest net loss at €5.82 billion and reported that Volkswagen attributed much of it to €7.8 billion in one-off effects.

Porsche charge drives much of the quarterly loss

Porsche has itself been hit by weaker business in China, US tariff policy and changes to its electric vehicle strategy, dpa reported. DW said Volkswagen had warned the previous month of a €10 billion hit to annual profits across its 10-brand group, with Porsche accounting for the largest share.

China deliveries fall as Volkswagen faces wider pressure

Volkswagen's vehicle deliveries fell 14.3% from a year earlier to 1.89 million in the third quarter, according to dpa. In China, deliveries dropped 38.5% to just under 406,000 vehicles. The figures show the scale of the decline in a market where Volkswagen faces intense price competition from local carmakers, as the AP reported.

The pressure extends beyond China. The AP reported that US import tariffs and a greater share of electric vehicles, which earn less per vehicle than combustion-engine models, also weighed on profits. DW described declining demand and the shift to electric vehicles as continuing challenges for Volkswagen.

The results come after Volkswagen lowered its 2026 operating-margin forecast in mid-September to no more than 1% of revenue, down from a previous range of 4% to 5.5%, dpa reported. Its operating margin was 2.8% in 2025.

Cost cuts put jobs and German plants in focus

Volkswagen is pursuing cost cuts alongside the financial strain. The AP said its restructuring could mean up to 100,000 job losses and the closure of four German plants; those are potential consequences, not completed cuts or closures. DW reported that the group had announced plans to cut more than 100,000 jobs by the end of the decade, but the reports differ on the scale and status of the proposed reductions.

Chief financial officer Arno Antlitz said the year's results meant Volkswagen could not afford to lose time and had to act quickly and decisively, according to the AP. The company's financial outlook and the delivery decline explain why management is pressing ahead with cost cuts, while the precise effect on workers and individual plants remains unsettled.