Volkswagen's Q3 loss widens to over $6.5 billion, raising restructuring stakes

Volkswagen Reports Over $6.5 Billion Q3 Loss, Faces Restructuring Pressures

Volkswagen's Third Quarter Financial Performance and Strategic Challenges

By Rachel More

Deepening Crisis Reflected in Q3 Results

BERLIN, Oct 29 (Reuters) - Volkswagen tumbled further into the red in the third quarter, signalling a deepening crisis at the world's second-largest carmaker, which is battling seismic challenges across key markets as it embarks on a major restructuring.

Operating Losses and Analyst Expectations

Europe's top automaker reported an operating loss of €5.9 billion ($6.59 billion) during the three-month period. Visible Alpha analysts had forecast a €2.6 billion loss, following a €1.3 billion loss a year earlier.

Management Response and Revenue Decline

"The nine-month results make one thing clear: We cannot afford to lose any time. We must act quickly and decisively," finance chief Arno Antlitz said in a video statement.

Sales revenue also fell by a stronger-than-forecast 6% during the third quarter to €75.3 billion.

Shares were indicated 1.1% lower in pre-market trading.

Restructuring Pressures and Competitive Landscape

The results underscore the pressure on Volkswagen to overhaul its business model in the face of brutal competition in China, billions in annual tariff costs and a costly ramp-up of EVs in Europe, where Chinese rivals are also making gains.

Job Cuts and Plant Closures

CEO Oliver Blume plans 100,000 job cuts across the company, which includes the Audi and Porsche brands. Up to four plants in Germany face closure under his plan, which has been met with fierce opposition from unions and possible strikes from early next year.

Special Items and Profit Margin Forecast

Antlitz said the hefty loss was caused by special items totalling around €8 billion.

"But even before these special items, our operating return on sales after nine months is just 3.8%," he said. "That is not enough in the long term."

Last month, Volkswagen flagged €10 billion in one-off costs, mostly linked to problems at Porsche, while slashing its 2026 profit margin forecast to a maximum of 1%.

Additional Financial Information

($1 = 0.8959 euros)

(Reporting by Rachel More; Editing by Friederike Heine and Thomas Derpinghaus)