Volkswagen Cuts Outlook on €10bn One-Off Hit
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 its expected operating margin to a maximum of 1% from previous guidance of 4.0% to 5.5% as market conditions deteriorated.
- The automaker warned of a "further deterioration in the market environment, especially in China," alongside about 10 billion euros 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 earlier this month the group struck an agreement with labor representatives that 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 as investor sentiment soured across the sector.
- Management is advancing cost-cutting measures, including the planned sale of its Osnabrück plant, while Porsche prepares to outline updated medium-term financial targets during a capital markets day on Oct. 7.
39 Articles
39 Articles
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.
One percent return on sales instead of, as previously expected, four to five and a half percent: Volkswagen significantly revised its profit forecast for the current fiscal year. VW and Porsche's prices fell sharply as a result.
Reformatorisch Dagblad
Volkswagen expects to have to settle for significantly lower profits this year. The German car group announced on Friday that 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.
Coverage Details
Bias Distribution
- 47% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
