Volkswagen Posts Biggest Quarterly Loss in Over a Decade Amid China Slowdown

Volkswagen reported an operating loss of €5.9 billion ($6.6 billion) in the third quarter of 2026, marking its steepest quarterly deficit in more than a decade. The loss was driven by approximately €8 billion in one-off charges, including a writedown on its stake in Porsche, alongside weakening business performance in China. The automaker’s latest results represent its largest quarterly loss since the fourth quarter of 2015, when it incurred substantial costs linked to the Dieselgate emissions scandal.

The financial setback has intensified pressure on Volkswagen to accelerate its restructuring programme, which includes plans to cut 100,000 jobs across the group and potentially close up to four plants in Germany. Finance chief Arno Antlitz stressed the need to fundamentally reshape the company’s business model, warning that its financial performance left no room for delay. Despite the disappointing results, Volkswagen shares rose 1.7% by 1100 GMT on Thursday, as investors had already anticipated significant losses following the company’s earlier warning of higher exceptional costs and reduced profit margin expectations.

Volkswagen’s challenges reflect broader difficulties facing European automakers as Chinese manufacturers expand into international markets with competitively priced electric vehicles. Declining demand in China, rising competition and the high cost of developing affordable EVs are putting additional pressure on profit margins. Volkswagen is increasing exports from China while working to restore profitability in its local operations, with its Anhui venture targeting at least break-even performance by 2030. However, analysts have warned that further writedowns remain possible if market conditions and competition from Chinese rivals fail to improve.

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