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Volkswagen Posts €5.86 Billion Q3 Operating Loss on Porsche Writedown
Volkswagen posts €5.86 billion operating loss for third quarter, driven by a Porsche writedown and one-off costs.
Key points
- Operating loss of €5.86 billion compared with €1.3 billion in the same quarter last year.
- Sales revenue dipped 6.3% year-on-year to €75.3 billion, and deliveries fell roughly 15%.
- CEO Oliver Blume plans to shed around 100,000 jobs across the group in the coming years.
Why it matters. Up to four German plants could close under the restructuring, which could lead to strikes starting next year as unions resist the plan.
Volkswagen Group on Thursday posted its worst quarterly numbers in more than a decade, with an operating loss of €5.86 billion (roughly $6.53 billion) for July to September. One-off costs, including €6.4 billion in non-cash Porsche writedowns, drove the bulk of the losses, against €1.3 billion a year earlier. CFO Arno Antlitz said the company cannot afford to lose time as it plans to cut around 100,000 jobs, with sales revenue down 6.3% to €75.3 billion.
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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.