Volkswagen posts €5.8bn Q3 loss on €6.4bn Porsche write-down, China slump
Volkswagen lost €5.82 billion after tax in July–September 2026, far worse than a year earlier, as a €6.4 billion Porsche impairment, a 38.5% fall in China deliveries and tariffs hit Europe's biggest carmaker.
At a glance
- Volkswagen Group made a net loss of €5.82 billion (about $6.5 billion) in the third quarter of 2026, against a loss of about €1.07 billion a year earlier.
- The operating loss was about €5.9 billion, more than double the roughly €2.6 billion analysts had expected; one-off items totalled about €7.8 billion.
- The biggest item was a €6.4 billion non-cash goodwill write-down at Porsche, reflecting lower expectations for the sports-car maker.
- Revenue fell 6.3% to €75.3 billion, deliveries fell 14.3% to 1.89 million, and deliveries in China dropped 38.5% to just under 406,000.
- Chief executive Oliver Blume's plan foresees about 100,000 job cuts across the group and up to four plant closures in Germany; unions have threatened strikes.
Volkswagen, Europe's largest carmaker, made a net loss of €5.82 billion (about $6.5 billion) in the third quarter of 2026, the company said on Thursday, October 29. The loss — more than five times the €1.07 billion it lost a year earlier — was driven mainly by a €6.4 billion write-down on the value of Porsche, together with collapsing sales in China, US tariff costs and price wars around the world.
The numbers
The operating loss came to about €5.9 billion, against the roughly €2.6 billion loss analysts had forecast. Volkswagen said one-off items of about €7.8 billion in the quarter were the main reason.
| Volkswagen Group, Q3 2026 | Figure | Change on a year earlier |
|---|---|---|
| Revenue | €75.3 billion | −6.3% |
| Operating result | loss of about €5.9 billion | from a loss of about €1.3 billion |
| Net result | loss of €5.82 billion | from a loss of €1.07 billion |
| One-off (special) items | about €7.8 billion | — |
| Porsche goodwill impairment | €6.4 billion (non-cash) | — |
| Global deliveries | 1.89 million vehicles | −14.3% |
| Deliveries in China | just under 406,000 | −38.5% |
| Deliveries, January–September | about 6 million | −9% |
Before special items, the group's operating return on sales for the first nine months was 3.8%. Shares were indicated about 1% lower before European markets opened.
Porsche drags the group down again
The largest single charge was a €6.4 billion impairment of the goodwill Volkswagen carries for Porsche, an accounting step that reflects lower expectations for the sports-car maker's future profits. It does not involve cash leaving the business, but it wipes billions off the group's books.
Porsche, majority-owned by Volkswagen, has been hit by a slump in demand for luxury cars in China, US import tariffs and a costly change of course on its electric-car strategy. It was also the main reason for Volkswagen's loss in the same quarter last year. The company said Porsche's performance has stabilised recently.
Background: a year of downgrades
The result had been partly signalled. In September, Volkswagen warned of around €10 billion in one-off costs, mostly linked to Porsche, and cut its 2026 operating margin forecast to no more than 1% of revenue, from an earlier range of 4% to 5.5%. The group's margin was 2.8% in 2025, when revenue reached €321.9 billion.
In July it had already dropped its hope of growing revenue by up to 3% this year. It now expects 2026 revenue of about €315 billion — at best flat, and possibly down by as much as 3%.
China, for years Volkswagen's most profitable market, has turned into its biggest problem. Local brands such as BYD are winning buyers with cheaper electric cars, and Chinese makers are now gaining ground in Europe too, where Volkswagen is spending heavily to roll out its own electric models.
Reactions
Chief financial officer Arno Antlitz said the quarter's loss was caused by special items of about €8 billion, but warned that the underlying 3.8% margin was "not enough in the long-term". He said the company could not afford to lose time and had to act quickly and decisively.
Worker representatives have strongly opposed chief executive Oliver Blume's restructuring plan, which foresees about 100,000 job cuts across the group, including at Audi and Porsche, and the possible closure of up to four plants in Germany. Unions have warned that strikes are possible from early next year.
Why it matters
Volkswagen employs hundreds of thousands of people and sits at the centre of Germany's industrial economy, so its troubles weigh on suppliers, regional economies and the wider debate over whether Europe's car industry can compete with China's electric-car makers.
For buyers, the price war is a mixed picture: more choice and discounts on electric models in the short term, but fewer European factories and possibly fewer models in the longer term. In South Asia, Volkswagen has a smaller footprint than Japanese and Korean brands, but the group's push to cut costs is likely to shape which models it builds and exports from India.
What happens next
Volkswagen will now try to push through its cost-cutting plan in talks with unions, with the threat of industrial action hanging over early 2027. Investors will look for any change to the full-year outlook and for details of which German plants could close. The group's full-year 2026 results are due in the first quarter of next year.
Questions people are asking
Why did Volkswagen make a loss in Q3 2026?
Mainly because of one-off charges of about €7.8 billion, led by a €6.4 billion goodwill write-down at Porsche. Weak sales in China, US tariff costs and a higher share of lower-margin electric cars also squeezed earnings.
How much did Volkswagen lose in the third quarter of 2026?
Volkswagen reported a net loss of €5.82 billion and an operating loss of about €5.9 billion for July–September 2026, on revenue of €75.3 billion.
Is Volkswagen closing factories in Germany?
Under chief executive Oliver Blume's restructuring plan, up to four German plants face closure and about 100,000 jobs are to go across the group, including at Audi and Porsche. Unions strongly oppose the plan and have warned of strikes from early next year.
