Crisis-Wracked Volkswagen Warns of 10-Bn-Euro Hit to Profits
VW said 10 billion euros in negative items, including a 6 billion-euro Porsche writedown, will weigh on 2026 results.
- On Friday, Volkswagen slashed its 2026 profit outlook, lowering expected operating margin to a maximum of 1% from previous guidance of 4.0% to 5.5%.
- The automaker warned of a "further deterioration in the market environment, especially in China," alongside 10 billion in one-off charges including a $6.9 billion writedown tied to Porsche.
- Faster adoption of battery-powered vehicles in Europe is pressuring margins, while an earlier labor agreement could double planned global job cuts to 100,000.
- Shares declined as much as 7.5% on the news, with the sell-off spilling over to other manufacturers including BMW, Mercedes-Benz Group, and Ford Motor.
- Management is advancing cost-cutting measures including the planned sale of its Osnabrück plant, while Porsche prepares to outline updated financial targets on Oct. 7.
46 Articles
46 Articles
In 2026, Volkswagen only expects a maximum of one percent return on sales instead of up to 5.5 percent. A write-down of six billion euros on Porsche presses the profit, the share lost significantly.
The crisis mood in Wolfsburg continues. Due to various "special effects", the Volkswagen Group has to drastically reduce its profit forecast for the current financial year. Further uncertainties that could reduce revenues remain.
Volkswagen has reduced one of its main profitability targets for this year, while seeking to contain the impacts of a series of challenges that have forced it to significantly wipe its staff. Exclusive material for subscribers. To have full access, access the link of the material and register.
Volkswagen expects to have to settle for significantly lower profits this year. The German car group announced it is lowering its forecasts due to a sharp contraction in the Chinese automotive market and the costs associated with the plan to cut jobs.
saarbruecker-zeitung.de
volksfreund.deBillion-dollar depreciation on Porsche, weak China businesses and expensive corporate conversion: VW is running worse than expected. In 2026, Europe's largest car company could only earn a mini profit.
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