Volkswagen Group has posted a widening operating loss of €5.8bn in the third quarter, way above analyst predictions and adding to pressures on the company to reduce its cost base.
Over the nine-month period to the end of September the company posted a €0.1bn operating profit, but that compares with €5.4bn in the same period of 2025.
VW Group’s CFO, Arno Antlitz, issued a stark warning. “The nine-month results make one thing clear: We cannot afford to lose any time and must act quickly and decisively.”
The company said the decline in the operating result was primarily attributable to special items of €8.7 billion, of which €7.8 billion arose in the third quarter. Theese included impairment charges on Porsche goodwill (€6.4 billion), non-cash impairment adjustments on assets of fully consolidated companies in China (around €1 billion), and additional expenses in connection with the planned sale of Volkswagen Osnabrück GmbH.
The weak market environment in China, increasing global pricing and competitive pressure, and the increased share of lower-margin electric vehicles in vehicle sales also weighed on earnings, VW said.
Group vehicle sales in the nine-month period of 2026 were down 11% at 5.9m vehicles. VW said the drop was due to lower markets, particularly China, and further intensifying global pricing and competitive pressure. Nine-month sales revenue was down slightly at €233.4bn (versus €238.7bn).
CFO Arno Antlitz also stressed that VW is ‘leading the way in electric mobility in Europe’.
“Electric vehicles account for 40 per cent of our order bank. Our Electric Urban Car Family, with 150,000 orders, is making a major contribution to this,” he said.
He also said that US tariffs “weigh on us” and that “the Chinese market is shrinking, and competitive pressure in Europe is increasing significantly.”
He added: “The market success of our electric vehicles is putting additional pressure on our earnings, as we currently earn less from electric vehicles than from combustion-engine vehicles.
“After nine months, our operating return on sales before special items stands at 3.8 per cent. That is too low to continue investing strongly in our future.
“With our Future Plan, we have defined the key measures to sustainably improve our profitability: a streamlined model range, simpler structures, improved vehicle costs, lower overhead costs, greater efficiency in our plants, and faster technology development.
“Together, these form a comprehensive cost programme of around 31 billion euros. What matters now is swift and consistent implementation.”
