Volkswagen swings to 5.82 billion-euro quarterly loss on Porsche writedown
Volkswagen posted a third-quarter loss after tax of about 5.82 billion euros after a loss of 1.07 billion a year earlier, driven mainly by a 6.4 billion-euro impairment on Porsche.
Archive image · Photo: Richard Bartz / Wikimedia Commons, CC BY-SA 3.0 (cropped and resized)
Volkswagen sank deep into the red in the third quarter, the carmaker said Thursday. Its group result after tax was a loss of 5.82 billion euros for July through September, compared with a loss of just over 1.07 billion euros a year earlier. The operating loss was 5.86 billion euros. Revenue fell 6.3% to roughly 75.3 billion euros.
The result was weighed down by special items totaling 7.8 billion euros, including a non-cash impairment of about 6.4 billion euros on the goodwill of its Porsche unit, reflecting lower expectations for the sports car brand. The company also cited a weak Chinese market, mounting price and competitive pressure, a higher share of less profitable electric vehicles and restructuring costs.
Deliveries fell more than 14% to 1.89 million vehicles in the quarter, and sales in China dropped 38.5% to just over 406,000. Volkswagen expects an operating margin of no more than 1% for 2026 after cutting its forecast from 4.0% to 5.5% in mid-September. It sees full-year revenue of around 315 billion euros.