Volkswagen suffers €6bn loss as sales crisis deepens
Volkswagen suffers €6bn loss as sales crisis deepens
Matt OliverThu, October 29, 2026 at 1:45 PM UTC
4
Volkswagen vehicle deliveries have plunged 14pc worldwide - Reuters/Fabian Bimmer
Volkswagen (VW) has slumped to its biggest loss since the Dieselgate scandal as the German car giant battles intense competition in China.
Bosses at the company warned they were running out of time to mount a turnaround after vehicle deliveries plunged 14pc worldwide.
That included a 40pc drop in China, once VW’s most profitable market.
As a result, VW said its third-quarter losses in 2026 had widened to €5.8bn (£4.9bn), from €1.1bn at the same time last year.
The quarterly result was VW’s worst since 2015, when the German group booked major one-off charges related to its Dieselgate emissions-cheating scandal, a spokesman told Reuters.
It comes as the company is seeking to cut costs and revive its fortunes in the face of tough competition from Chinese rivals, particularly on electric vehicles (EVs).
Under a restructuring being pushed through by Oliver Blume, its chief executive, up to 100,000 jobs could be cut.
Arno Antlitz, VW’s finance chief, stressed that the business now needed to focus on “swift and consistent implementation”.
He added: “We cannot lose any time and need to act quickly and decisively.”
Advertisement
VW’s earnings were also hit by a €6.4bn write-down on the value of luxury carmaker Porsche, which it also owns.
The company’s poor performance in China is a particularly heavy blow. Once a money-spinner for the carmaker, the country has become a brutal environment for foreign brands as domestic manufacturers launch price wars against each other.
Tariffs imposed by Donald Trump have also battered VW’s profits in the US, while the company said an increasing share of less-profitable EVs in its order books was also eating away at margins.
The latest loss will pile pressure on Mr Blume to overhaul VW’s business model more quickly.
Moritz Kronenberger, of Volkswagen investor Union Investment, said: “The loss reported by VW today is a warning sign for the entire sector and industry, and should also serve as one for policymakers.”
Along with job cuts, his plans include closing up to four plants in Germany – a proposal that has drawn fierce opposition from unions and could trigger strikes from next year.
Europe’s largest carmaker is also seeking alternative uses for defunct manufacturing facilities as it shrinks production.
The company – which includes Audi, Porsche, Skoda and Bentley, as well as the VW brand – has said it would prefer to find investors, industrial partners and alternative uses for plants where vehicle production is no longer viable.
Try full access to The Telegraph free today. Unlock their award-winning website and essential news app, plus useful tools and expert guides for your money, health and holidays.
Source: “AOL Breaking”
