3rd Update - Volkswagen's third-quarter losses widen to over $6.5 billion, intensifying restructuring pressure

Revise the headline, add share price information in paragraph 5, and include comments by the CFO on special items in paragraphs 9-10

Rachel More

Reuters Berlin, October 29 - Volkswagen VOWG_p.DE's third-quarter losses further widened, indicating the crisis at the world's second-largest automaker is deepening. The company is undertaking a major restructuring while facing fierce challenges in several key markets.

Europe's largest automaker reported an operating loss of 5.9 billion euros ($6.59 billion) for the quarter. Visible Alpha analysts had previously predicted a loss of 2.6 billion euros, while the loss for the same period last year was 1.3 billion euros (link).

"The performance in the first nine months makes one thing clear: we have no time to lose. Rapid and decisive action is required," 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 exceeding expectations.

In pre-market trading, the company’s share price was down 1.1%.

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These results underline the pressure Volkswagen is under: amid fierce competition in the Chinese market, annual tariff costs of several billion, and high costs of advancing its electric vehicle business in Europe (even as Chinese competitors continue to make gains in the European market), Volkswagen must overhaul its entire business model.

CEO Oliver Blume plans to cut 100,000 jobs across the group (link), including at the Audi and Porsche P911_p.DE brands. Under his plan, up to four factories in Germany could be shut. The plan has faced fierce opposition from labor unions (link) and may prompt strikes early next year.

Antlitz stated that the massive loss was caused by special items totaling around 8 billion euros.

"But even excluding these special items, our operating profit margin for the first nine months was only 3.8%," he said. "That is far from sufficient in the long run."

Last month, Volkswagen warned of a one-off cost of 10 billion euros, chiefly related to Porsche's issues, and at the same time downgraded its 2026 profit margin (link) forecast to a maximum of 1%.

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(1 US dollar = 0.8959 euros)

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