Falling Porsche value, China slowdown push Volkswagen into quarterly loss of $6.5 bn
German automaker faces falling demand in China, US tariffs and weaker electric vehicle profits as it pursues a restructuring that could cut up to 100,000 jobs and close four plants
Volkswagen reports a 5.8 billion euro after-tax loss for July-September.
Revenue falls 6.3 per cent to 80.3 billion euros amid pressure from China and US tariffs.
A 6.4 billion euro writedown linked to Porsche's falling valuation weighs on results.
German automaker Volkswagen reported an after-tax loss of 5.8 billion euros (USD 6.5 billion) for the July-September quarter, as a writedown linked to luxury carmaker Porsche compounded weak demand in China, US tariffs and lower profits from electric vehicles.
The results, announced on Thursday, underline the challenges facing the company as it seeks to cut costs through a restructuring that could result in the loss of up to 100,000 jobs and the closure of four plants in Germany.
Chief financial officer Arno Antlitz said the company's results so far this year meant it could not afford to lose time and had to act quickly and decisively.
Volkswagen's sales revenue fell 6.3 per cent to 80.3 billion euros compared with the same quarter last year. Earnings were also hit by a 6.4 billion euro reduction to reflect the decline in the value of its stake in Porsche.
China, once a key source of profits for Volkswagen, has become a more challenging market as demand weakens and local carmakers intensify price competition.
US import tariffs imposed by President Donald Trump have added to the pressure on profits. Volkswagen is also facing lower returns as electric vehicles account for a growing share of sales, with these models earning less per vehicle than those powered by internal combustion engines.