Update 2 - Volkswagen's third-quarter losses exceed expectations, intensifying restructuring pressure

Additional background information on restructuring, outlook and charts was included

Rachel More

Reuters Berlin, October 29 - Volkswagen VOWG_p.DE reported a further widening of its third-quarter loss, highlighting the deepening crisis facing the world’s second largest automaker. The company is embarking on a major restructuring as it confronts fierce challenges in all its main markets.

Europe’s largest automaker reported an operating loss of 5.9 billion euros ($6.59 billion) in the past three months. Analysts at Visible Alpha had forecasted a loss of 2.6 billion euros, while in the same period last year the loss was 1.3 billion euros (link).

“The results for the first nine months show one thing: we have no time to lose. We must act quickly and decisively,” Chief Financial Officer Arno Antlitz said in a video statement.

Third-quarter sales revenue also fell by 6% to 75.3 billion euros, a drop that exceeded expectations.

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These results highlight the immense pressure facing Volkswagen: fierce competition in China, annual tariff costs amounting to billions, and the high expenses of ramping up its electric vehicle business in Europe—while Chinese competitors are also making headway in the European market.

CEO Oliver Blume plans to cut 100,000 jobs company-wide (link), including at the Audi and Porsche P911_p.DE brands. According to his plan, up to four factories in Germany could be closed, a move that has been met with strong opposition from unions (link) and could lead to strikes early next year.

Last month, Volkswagen warned of a one-off charge of 10 billion euros, mainly due to issues at Porsche, and at the same time cut its 2026 profit margin (link) forecast to a maximum of 1%.

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(1 USD = 0.8959 euro)

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