Volkswagen books €5.9 billion operating loss on Porsche writedown

Key takeaways

• Q3 operating loss of €5.86 billion is Volkswagen’s worst since the 2015 Dieselgate quarter
• Porsche writedown of €6.4 billion drove most of €7.8 billion in one-offs
• No Australian pricing, dealer or supply changes have been announced

Volksxwagen Group, the owner of Volkswagen, Audi, Porsche, Skoda and Cupra, has reported a €5.86 billion operating loss for the third quarter of 2026. It is the group’s worst quarterly result since the fourth quarter of 2015, when emissions-scandal charges hit, a company spokesperson told Reuters. Revenue fell 6.3% to €75.3 billion.

Volkswagen Q3 2026 results

One-off charges totalled about €7.8 billion in the quarter, and most of that was a €6.4 billion writedown of goodwill on Porsche. A goodwill writedown is an accounting charge for a business being worth less than its value on the books. The operating margin was negative 7.8%, and the after-tax loss was €5.82 billion, up from €1.07 billion a year earlier. Reuters said analysts had expected a loss of about €2.6 billion.

Even without the one-offs, the margin for the first nine months was only 3.8%, which finance chief Arno Antlitz said is not enough over the long term.

Third-quarter deliveries fell 14% to about 1.89 million vehicles, according to Trending Topics. EconoTimes reports China deliveries dropped 38.5%. Chinese rivals knocked Volkswagen out of top spot in China in 2024, and it fell to third last year. Antlitz has also said US tariffs cost the group about €4 billion a year.

Volkswagen restructuring and outlook

Volkswagen expects 2026 revenue of about €315 billion and an operating margin of up to 1%. It cut that forecast last month when it flagged €10 billion in one-off costs.

Reports say the supervisory board agreed in September to add 50,000 job cuts to the 50,000 already planned, taking the total to as many as 100,000. The board also said it cannot guarantee production at Emden, Zwickau, Hannover and Audi’s Neckarsulm plant from 2031. The restructuring targets an operating margin of 8% to 10% by 2030.

Volkswagen Group sells Volkswagen, Audi, Skoda, Porsche and Cupra vehicles in Australia. None of the reports on the results mention changes to Australian pricing, dealers, models or supply.

Unions have opposed the plant closures, and strikes are possible from early next year.