Volkswagen reports its worst quarterly loss in over a decade, citing competition, tariffs, and electric vehicle costs.
Volkswagen reports major loss
Volkswagen reported an operational loss of 5.9 billion euros for the third quarter, its worst result in more than 10 years. This figure includes about 8 billion euros in exceptional items, largely depreciation related to its stake in Porsche.Revenue drops below expectations
Even excluding these items, revenue fell by 6% to 75.3 billion euros, below analyst expectations. The company's operational profitability, excluding exceptional items, did not exceed 3.8% for the first nine months of the year.CFO warns of long-term concerns
The chief financial officer, Arno Antlitz, stated this level would not be sufficient in the long term. Volkswagen's stock lost 2% following the report.Challenges in global markets
The company faces challenges including intense competition in China, annual tariffs costing several billion euros, and the rising costs of electric vehicles in Europe, where Chinese manufacturers are gaining ground.Costs and margin forecasts
Last month, Volkswagen announced 10 billion euros in exceptional costs and reduced its margin forecast for 2026 to a maximum of 1%. The third quarter results confirm this trajectory.Proposed job cuts and plant closures
CEO Oliver Blume has proposed eliminating 100,000 jobs across the group, including Audi and Porsche, and considering the closure of up to four plants in Germany. Unions are opposed to these measures, and strikes are being considered as early as the beginning of next year.Uncertain effectiveness of measures
Antlitz emphasized the urgency of the situation, stating the group "can no longer afford to lose time." However, the effectiveness of these measures remains uncertain, as they may not address broader issues such as product range, competition with Chinese brands, or the cost of electrification.
