Updated version 1 - Third update - Volkswagen's third-quarter loss expands to more than $6.5 billions, restructuring pressure intensifies

Milestone event added in paragraph 1, cost details in paragraph 2, stock price movement in paragraph 5

Rachel More

Reuters Berlin, Oct 29 - Volkswagen VOWG_p.DE saw its third-quarter losses deepen further, marking its worst performance in over a decade. As the world's second-largest carmaker, the company is facing tremendous challenges in key markets and has begun a major restructuring.

The largest carmaker in Europe reported an operating loss of €5.9 billion ($6.59 billion) for the three-month period, mainly due to about €8 billion in special items. Most of these were related to a writedown of its stake in subsidiary Porsche P911_p.DE.

"The performance in the first nine months shows one thing: we can no longer afford to waste any time. We must act quickly and decisively," Chief Financial Officer Arno Antlitz said in a video statement.

Third-quarter sales revenue also dropped by 6% to €75.3 billion.

After the quarterly report was released, the company's share price fell by 2%.

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These results highlight the immense pressure facing Volkswagen: fierce competition in the Chinese market, annual tariff costs running into the billions, and soaring expenses from pushing its electric vehicle business in Europe—while Chinese rivals are gaining ground in Europe as well.

CEO Oliver Blume plans to cut 100,000 jobs across the company, including the Audi and Porsche brands (link). According to his plan, up to four factories in Germany face closure, which has met fierce opposition from unions (link) and could spark strikes early next year.

Antlitz said that even excluding special items, Volkswagen’s operating margin for the first nine months was just 3.8%.

"In the long run, that is nowhere near enough," he added.

Last month, Volkswagen warned of a €10 billion one-off cost and also lowered its 2026 margin forecast (link) to 1% at most.

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