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Volkswagen posts €5.86 billion operating loss in Q3

Volkswagen Group posted a 5.86 billion euro operating loss in Q3 due to Porsche writedowns and China demand drops.

Updated 2 min read

Published by Agyata NewsroomEditorial policyCorrections

Key points

  • Volkswagen Group recorded an operating loss of 5.86 billion euros in the third quarter.
  • A 6.4 billion euro writedown on Porsche assets was the largest portion of the special items causing the loss.
  • The company plans to cut 100,000 jobs and close up to four German plants to reduce costs.

Why it matters. The results highlight the pressure on the German automotive industry to adapt to competition in China and rising tariffs while managing a transition to electric vehicles.

Updated Sources: DW

Volkswagen Group reported an operating loss of 5.86 billion euros for the third quarter, marking its worst quarterly performance in over a decade. Chief financial officer Arno Antlitz attributed the decline to one-off costs, including a 6.4 billion euro writedown on Porsche assets, alongside falling demand in China. The company plans to cut approximately 100,000 jobs and close up to four German plants to address these challenges.

Latest updates

Volkswagen posts €5.86 billion operating loss in Q3

The Volkswagen Group filed its worst quarterly financial results in over a decade, posting an operating loss of €5.86 billion for July through September. This significant deficit was primarily caused by a massive writedown regarding its struggling sister company, Porsche. Despite the dismal operational figures, share prices climbed on Thursday, suggesting investors anticipated the bad news was already priced in. The results represent a stark contrast to the company's historical performance and highlight ongoing challenges within the automotive conglomerate.

DW

Volkswagen Posts €5.86 Billion Q3 Operating Loss on Porsche Writedown

The Volkswagen Group reported an operating loss of €5.86 billion, roughly $6.53 billion, for the July to September quarter. The company said the result was its worst quarterly performance in more than a decade, and the weakest since the Dieselgate scandal in 2015. One-off costs, including a large writedown on its stake in struggling sister company Porsche, drove the loss. Volkswagen shares rose after the announcement, which analysts had largely anticipated. The results were published on Thursday.

DW

Sources

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