Volkswagen posted $6.5 billion quarterly loss, most since 2015, as China slump deepens

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Deliveries in China fell more than 30% in the first nine months as the automaker pursues a restructuring that could cut up to 100,000 jobs

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Volkswagen reported an after-tax loss of €5.8 billion ($6.5 billion) for the July-September quarter on Thursday as a write-down on its Porsche stake and falling sales in China weighed on results.

Revenue fell 6.3% from a year earlier. Earnings were dented by a charge of €6.4 billion that marked down what Volkswagen’s Porsche holding is worth. The operating loss grew to roughly €5.9 billion, compared with €1.3 billion a year earlier.

The quarterly loss was the biggest since 2015, the year a diesel emissions-cheating scandal engulfed the company, according to The New York Times. Deliveries in China were down by over 30% between January and September.

"We cannot afford to lose any time and must act quickly and decisively," Arno Antlitz, Volkswagen's chief financial officer, said in a statement.

Volkswagen said it expects 2026 Group sales revenue of around €315 billion and an operating return on sales of up to 1%. In the Automotive Division, it expects net cash flow of €3 billion to €6 billion and net liquidity of €32 billion to €34 billion.

The company said the forecast assumes the current tariff situation in international trade stays unchanged. It leaves out any effect from a Middle East escalation, from Group Target $TGT Picture 2030 and from the sale of a majority stake in Everllence.

Volkswagen in September cut its full-year profit outlook, citing about €10 billion in one-time charges concentrated at Porsche, along with U.S. tariffs and a weaker Chinese auto market. The new target of an operating return on sales of up to 1% replaced a range of 4% to 5.5%.

Antlitz said Volkswagen's electric models bring in smaller profits than its gasoline and diesel cars.

The supervisory board approved a restructuring plan in September that doubles planned job losses to 100,000 and halves the model lineup. The plan could also close four German plants, according to The Associated Press. Volkswagen is aiming to trim roughly €31 billion ($35 billion) from its expenses, according to The New York Times.

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