Volkswagen’s Q3 loss widens to more than 5 billion euros, raising restructuring stakes

[BERLIN] Volkswagen tumbled further into the red in the third quarter, posting its worst result in over a decade, as the world’s second-largest carmaker battles seismic challenges in key markets and embarks on a major restructuring.

It reported an operating loss of 5.9 billion euros (US$6.59 billion) during the three-month period, hit by special items totalling around eight billion euros, largely linked to a write-down on the value of its stake in subsidiary Porsche.

“The nine-month results make one thing clear: We cannot afford to lose any time. We must act quickly and decisively,” finance chief Arno Antlitz said.

Sales revenue also fell by 6 per cent during the third quarter to 75.3 billion euros.

Shares fell 2 per cent after the quarterly report.

The results underscore the pressure on Volkswagen to overhaul its business model in the face of brutal competition in China, billions in annual tariff costs and a costly ramp-up of electric vehicles in Europe, where Chinese rivals are also making gains.

CEO Oliver Blume plans 100,000 job cuts in the company, which includes the Audi and Porsche brands. Up to four plants in Germany face closure under his plan, which has been met with fierce opposition from unions and possible strikes from early 2027.

Antlitz said even before the special items, Volkswagen’s operating return on sales after nine months was just 3.8 per cent.

“That is not enough in the long term,” he added.

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In September, Volkswagen flagged 10 billion euros in one-off costs, while slashing its 2026 profit margin forecast to a maximum of 1 per cent. REUTERS