Volkswagen losses surge to €5.9bn as China sales slump

Volkswagen reported a Q3 operating loss of €5.9bn, against €1.3bn a year earlier and a €2.6bn loss expected by analysts (Visible Alpha). The loss reflects writedowns and restructuring totalling €10bn flagged with a September guidance cut, including a €6.4bn non-cash impairment on its Porsche stake and €1bn on China assets. Revenue fell 6.3% to €75.3bn and January-September deliveries in China dropped 30%. CFO Arno Antlitz said 'the Chinese market is shrinking sharply... Chinese manufacturers are increasing competitive pressure with low prices, and in the US, tariffs are weighing on us'; excluding €8bn of one-offs the nine-month operating margin was 3.8%, which he called 'not enough in the long term'. Restructuring could cut more than 100,000 jobs and end production at four German plants. Full-year guidance is revenue of about €315bn and an operating margin of up to 1%. Counterweights: the loss was largely driven by already-flagged writedowns, net liquidity held at €33bn (vs €34.5bn at end-December) and shares fell only 1% early Thursday; strong EV sales in Europe nevertheless eroded margins versus combustion cars. Renault, by contrast, grew Q3 revenue 1.4% at constant currency to €11.6bn, with EVs about 26% of sales, and confirmed its ~5.5% margin target. The article does not cover VW's software operations or the Rivian joint venture.