Volkswagen Posts €5.8 Billion Quarterly Loss Amid China Slump and Porsche Write-Down
Written by AI from ttnews.com's report. Not checked by a person.
Volkswagen reported a €5.8 billion ($6.5 billion) after-tax loss for the July–September quarter, hurt by weak demand in China, U.S. tariffs, lower electric vehicle profits and a €6.4 billion reduction in the value of its Porsche stake.
Volkswagen posted a €5.8 billion ($6.5 billion) after-tax loss for the third quarter of the year, the automaker announced on Oct. 29. The result was driven by several pressures at once: a €6.4 billion write-down to reflect the fallen value of its stake in luxury carmaker Porsche, sluggish demand in China, U.S. import tariffs imposed by President Donald Trump, and thinner margins on electric vehicles, which earn less per unit than internal combustion models. Quarterly sales revenue fell 6.3% to €80.3 billion compared with the same period a year earlier. China, once a key profit center for Volkswagen, now presents the company with declining car sales and fierce price competition from local manufacturers. CFO Arno Antlitz said the results so far this year mean the company "cannot afford to lose any time and must act quickly and decisively." Volkswagen is pursuing a restructuring that could eliminate up to 100,000 jobs and close as many as four German plants, steps management says are necessary to bring costs under control.
