The German automotive giant reported a third-quarter operating loss of 5.86 billion euros, missing analyst expectations and pushing its operating margin to negative 7.8%. Revenue for the period slipped 6.3% to 75.28 billion euros, hit by 7.8 billion euros in one-off impairment charges. Chief Financial Officer Arno Antlitz confirmed the company is sticking to its recently slashed full-year guidance, which targets group sales revenue of approximately 315 billion euros by 2026.
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Volkswagen Accelerates Overhaul as Losses Deepen
Volkswagen is doubling down on a sweeping restructuring plan to eliminate 100,000 jobs and halve its model portfolio as the automaker grapples with a shrinking Chinese market, rising tariffs, and lower margins on electric vehicles that continue to erode the company’s bottom line.
Antlitz cited a perfect storm of challenges, noting that U.S. tariffs and intense European competition are compounding the internal drag caused by a costly transition to electric vehicles. With vehicle deliveries falling 14% to 1.89 million units in the third quarter, the company expects total annual deliveries to drop to 8.2 million units, down from 9 million in the previous year. To stabilize, Volkswagen is shifting from its previous goal of 50,000 job cuts to a more drastic reduction of 100,000 roles, while pushing for leaner organizational structures and faster technology development to counter a significant decline in its Chinese sales volume.
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