By Rachel More
BERLIN, Oct 29 (Reuters) – 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 across key markets and embarks on a major restructuring.
Europe’s top automaker reported an operating loss of €5.9 billion ($6.59 billion) during the three-month period, hit by special items totalling around €8 billion, largely linked to a writedown 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 in a video statement.
Sales revenue also fell by 6% during the third quarter to €75.3 billion.
Shares fell 2% 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 EVs in Europe, where Chinese rivals are also making gains.
CEO Oliver Blume plans 100,000 job cuts across 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 next year.
Antlitz said even before the special items, Volkswagen’s operating return on sales after nine months was just 3.8%.
“That is not enough in the long term,” he added.
Last month, Volkswagen flagged €10 billion in one-off costs, while slashing its 2026 profit margin forecast to a maximum of 1%.
($1 = 0.8959 euros)
(Reporting by Rachel More; Editing by Friederike Heine and Thomas Derpinghaus)
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