Volkswagen crisis worsens with $11.5 billion profit warning, largely due to Porsche struggles
VW said 10 billion euros in negative items, including a 6 billion-euro Porsche writedown, will weigh on 2026 results.
- On Friday, Volkswagen slashed its 2026 profit outlook, lowering expected operating margin to a maximum of 1% from previous guidance of 4.0% to 5.5%.
- The automaker warned of a "further deterioration in the market environment, especially in China," alongside 10 billion in one-off charges including a $6.9 billion writedown tied to Porsche.
- Faster adoption of battery-powered vehicles in Europe is pressuring margins, while an earlier labor agreement could double planned global job cuts to 100,000.
- Shares declined as much as 7.5% on the news, with the sell-off spilling over to other manufacturers including BMW, Mercedes-Benz Group, and Ford Motor.
- Management is advancing cost-cutting measures including the planned sale of its Osnabrück plant, while Porsche prepares to outline updated financial targets on Oct. 7.
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80 Articles
The turmoil continues at Volkswagen! A €6 billion loss in the Porsche unit and relentless pressure from Asian competitors have driven the German giant's profit targets to their lowest level in the last 10 years. While management presents the bitter pill, stating "We have no time to lose," 100,000 automotive workers, arguing that they are being unfairly blamed, are launching massive protests across the country.
Volkswagen initially expected profits of 4-5.5% on revenue, but was forced to revise the forecast downwards to just 1%, causing its stock to fall sharply. The post Volkswagen: Significantly revises profit forecast, causing its stock to fall sharply appeared first on in.gr.
Volkswagen Group initially expected profits of 4-5.5% on revenue, the reduction corresponds to around 10 billion euros
The losses of Porsche were exacerbated by the Volkswagen crisis, which prompted the group to record extraordinary burdens of $11.5 billion and to reduce its expectations of a 2026 profit margin to 1% as pressure intensified in China and America.
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