Volkswagen Q3 Loss Largest Since Dieselgate

The Volkswagen Group on Thursday posted its worst quarterly numbers in more than a decade. According to German news source DW , the company reported an operating loss of €5.86 billion for the period July 1 through September 30, 2027. A massive write down of its stake in Porsche was responsible for much of the loss, while its sales in China continued to decline at an alarming rate.

📌 The Core Development

“The nine month results make one thing clear: We cannot afford to lose any time. We must act quickly and decisively,” chief financial officer Arno Antlitz said in a video statement. DW was quick to point out that the cockamamie tariffs on cars imported into the US from Germany were another significant factory in the dismal financial picture for Volkswagen. The US is Porsche’s largest market and those tariffs have had a devastating effect on its sales in America.

For the third quarter, Volkswagen reported an operating loss of €5.86 billion — four times greater then the loss is posted last year in the third quarter. That marks the company’s worst performance since the Dieselgate crisis in 2015. Revenue from sales fell by 6.3 percent year on year to €75.3 billion. Deliveries to customers, unit sales, and unit production numbers all dipped by roughly 15 percent as the company reduced production levels in an attempt to adjust factory output to match lower demand.

🔍 Background & Sector Context

For 2026 so far, the company has had gross sales of €233.4 billion, which was virtually the same as last year, but sales volume was off 11 percent compared to 2025, so it is selling fewer cars but at higher prices. Operating profit was just €0.1 billion, compared with €5.4 billion a year ago. But so-called “special items” totaling €8.7 billion — including a non-cash write down of €6.4 billion on Porsche assets — led to that nearly negligible operating profit.

For the year, Volkswagen now expects its profit margin to be just 1 percent — far less than the 5 percent it projected at the start of the year. The only bright spot in the financial picture for Volkswagen is that sales of battery electric cars are up 39 percent year on year.

📊 Industry & Real-World Impact

Volkswagen’s first joint venture in China was with SAIC in 1984. At that time, China knew next to nothing about manufacturing high quality automobiles. Now more then 40 years later, the tables have turned and China is making what are perhaps the highest quality automobiles in the world. Volkswagen, which was once the teacher, is now the student. If it is to survive, it may be because of the contributions of its Chinese partners — SAIC, FAW, Anhui, and Xpeng.

🔮 Strategic Outlook & What Lies Ahead

Together, they have created Vega, a new technology package comprised of software, electronics, and a dedicated EV platform, making Volkswagen the only non-Chinese automaker with a locally developed technology foundation represented in the Chinese market. While the package will first be used for cars made and sold exclusively in China, the company hints it may become part of an export campaign. Sharp eyed readers will immediately spot the irony of a company that is being hammered by Chinese imports in its home market becoming a Chinese import itself, at least in some markets.

The China Main Platform (CMP) is designed for battery-electric and plug-in hybrid models in the A-segment. It is expected to achieve a CLTC range of over 600 km, with an efficient energy consumption of around 11 kWh per 100 km. Charging from 30 to 80 per cent will take 25 minutes. For the premium segment, the China Scalable Platform (CSP) features 850 volt architecture, which makes charging from 10 to 80 per cent in just 13 minutes possible. Models built on the CSP architecture are expected to have a range of 800 km or more, with energy consumption below 13 kWh per 100 km.