Volkswagen warns of 10-billion-euro profit hit, cuts 2026 margin forecast to one percent

EarningsCorporate ActionPrice Action Impact 5
โดย Yahoo Finance·DECN·Read original
Summary · why it matters

Volkswagen warned Friday of a 10-billion-euro hit to its annual earnings, citing tough conditions in China, problems at subsidiary Porsche and restructuring costs. The German auto giant said it now expects a profit margin of just one percent for 2026, down from a previous forecast of between four and 5.5 percent, and narrowed its sales outlook for the year to a slight fall to about 315 billion euros. Volkswagen wrote down the value of Porsche by six billion euros, its second such hit in a year after a 5.1-billion-euro charge last September, and booked another two billion euros in charges linked to write-downs of VW assets in China, the sale of its Osnabrueck plant in northern Germany and the expansion of early retirement schemes. Finance chief Arno Antlitz said the situation on global markets has continued to worsen, particularly in China, where the Volkswagen and Audi marques are feeling the heat and demand for battery-electric vehicles has accelerated while earning significantly less than internal combustion engine cars. VW shares plunged 7.5 percent after the announcement, while fellow German carmakers Mercedes-Benz and BMW both fell over five percent. The carmaker earlier this month struck a deal with unions to axe up to 100,000 jobs by 2030, increasing by 50,000 the number of expected cuts across the group.

Impact on stocks 6

Consumer Discretionary▼ · 3 stocks
Volkswagen AG
VOW
▼ NegativeCapitalrelevance

VW warned of a 10-billion-euro earnings hit and cut its 2026 margin forecast to one percent.

Electrification & Mobility▼ · 3 stocks
Volkswagen AG VZO O.N.
VOW3
▼ NegativeCapitalrelevance

VW's profit warning and margin cut apply to the group, whose VZO shares plunged 7.5 percent.

Porsche AG
P911
▼ NegativeCapitalrelevance

Volkswagen wrote down Porsche's value by six billion euros, its second such hit in a year.

Theme Impact 2

Off-coverage companies 1

Audi AGPrivate▼ Negative
Demandrelevance

Audi is feeling the heat in China as BEV demand accelerates but earns significantly less than ICE cars.

Related news

2

US auto industry groups urge Trump to block Chinese-made vehicles

Several US auto industry groups have sent a letter to President Trump urging him to block Chinese-made automobiles from entering the US market, ahead of a planned US-China summit next week. Among the groups that signed the letter are the Alliance for Automotive Innovation, which includes passenger car manufacturers from Japan, the US and Europe, and the National Automobile Dealers Association. Chinese-made passenger cars are effectively shut out of the US market by high tariffs and other measures, and the letter, dated the 17th, calls for the current policy to be maintained. It argues that easing entry restrictions would "undermine fair competition."
Electrification & Mobility ▼
Jiji Press·5hRead more →

Tesla Brings European Semi to Hanover, Targeting 550-Kilometer Range

Tesla is preparing to enter the European electric truck market, bringing its European Semi to the IAA Transportation trade fair in Hanover, Germany, after publishing key European specifications ahead of the event. The European version of the Semi offers a range of up to 550 kilometers and energy consumption of about 1 kilowatt-hour per kilometer, with deliveries poised to begin next year. According to Transport & Environment, new entrants collectively could capture 24% to 31% of Europe's electric heavy-truck market by 2030, though that estimate assumes manufacturers meet their stated production and sales ambitions. Tesla faces aggressive competition from established manufacturers that already offer EV trucks and hold extensive fleet-operator relationships, and its 550-kilometer range sits below some competing models that can travel roughly 700 kilometers on a single charge. The company would also need heavy capital spending on high-power charging infrastructure along freight corridors and must scale production alongside Semi deliveries to achieve mass adoption. Hedge fund holdings in Tesla declined to 116 in the second quarter from 123 in the first quarter, with BAMCO Inc. raising its stake by 5% to approximately $5.27 billion and DE Shaw cutting its position by 1% to about $1.83 billion.
TSLA
Electrification & Mobility
Insider Monkey·7hRead more →
▼3impact 5

Volkswagen Cuts 2026 Profit Outlook on China Slump and Porsche Writedown

Volkswagen has dramatically cut its 2026 profit outlook, now expecting an operating margin of no more than 1% this year, down from its previous forecast of at least 4%. The German carmaker expects around €10 billion, or $11.5 billion, in charges this year, including restructuring costs tied to workforce reductions and writedowns on Chinese assets; that total includes a €6-billion writedown related to Porsche, reflecting revised long-term expectations for the sports-car maker. Excluding the exceptional charges, Volkswagen said its operating margin would be around 4%. Volkswagen shares fell more than 7% following the announcement, dragging other automakers lower. Chief Financial Officer Arno Antlitz said the Chinese market has contracted by around 20%, with no stabilization currently in sight, while Chinese automakers take domestic share and expand into Europe with competitively priced electric vehicles. Volkswagen also said growing EV sales are weighing on profitability at its Volkswagen passenger-car and Audi businesses, and it recently reached an agreement with labor representatives that could increase planned job cuts to 100,000 globally.
VOW.XETRA ▼P911.XETRA ▼
Electrification & Mobility ▼
Bloomberg·12hRead more →
© 2026 MarketDXNews