By Rachel More
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.
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.
“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.
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.
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.
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%.
($1 = 0.8959 euros)
(Reporting by Rachel More; Editing by Friederike Heine and Thomas Derpinghaus)
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