German automaker Volkswagen posts $6.5B operating loss in Q3

German auto giant Volkswagen reported a €5.86 billion ($6.5 billion) operating loss in the third quarter of 2026, far wider than expected, as a large impairment on its Porsche brand and a sharp drop in China sales weighed heavily on results.

Europe’s largest automaker, which also owns the Audi, Bugatti, Seat, Skoda, and Porsche brands, said July-September sales revenue fell 6.3% to €75.28 billion ($83.93 billion). Global vehicle deliveries dropped 14.3% to 1,885,000 cars. Deliveries in China, the group’s largest market, fell 38.5% to 406,000 vehicles amid a broader market contraction.

One of the main reasons for the sharp decline in the financial results was a write-down related to the sports-car subsidiary Porsche. Due to weaker expectations for its future performance, the company recorded a €6.4 billion ($7.14 billion) impairment on the brand’s value.

The results are likely to give CEO Oliver Blume’s management team greater leverage in negotiations with unions over cost reductions. Volkswagen’s restructuring proposals could put 100,000 jobs worldwide at risk and may lead to the closure of three VW factories in Hannover, Emden, and Zwickau, as well as Audi’s plant in Neckarsulm.