By Islam El-Sakka
Volkswagen reported a 5.8 billion euro ($6.5 billion) after-tax loss for the July-September quarter, driven by weak demand in China, U.S. tariffs and a large writedown of its stake in Porsche.
Revenue Falls Amid Restructuring Pressure
Sales revenue dropped 6.3% to 80.3 billion euros compared with the same quarter last year. The results increase pressure on the automaker to cut costs through a restructuring that could eliminate up to 100,000 jobs and close four German plants.
CFO Urges Swift Action
Chief financial officer Arno Antlitz said the company “cannot afford to lose any time and must act quickly and decisively” given the year-to-date performance.
China Competition and EV Profitability Weigh
Once a key profit center, China now presents declining demand and fierce price competition from local manufacturers. U.S. tariffs imposed by President Donald Trump have also reduced profits, while the growing share of electric vehicles, which earn less per vehicle than combustion models, further squeezed margins.
Porsche Stake Devaluation
A 6.4 billion euro reduction to reflect the fallen value of Volkswagen's stake in luxury carmaker Porsche contributed significantly to the quarterly loss.
