Volkswagen Posts USD6.5B Loss as Porsche Writedown, China Slump Hit
Europe’s biggest automaker, whose stable also includes Audi, Bugatti, Seat, and Skoda alongside Porsche, saw revenue for the July-September period slide 6.3% to €75.28 billion ($83.93 billion). Worldwide deliveries sank 14.3% to 1,885,000 vehicles.
China rout
Sales in China, the group’s largest market, tumbled 38.5% to 406,000 vehicles as the broader market contracted.
Porsche writedown
A key driver of the damage was a €6.4 billion ($7.14 billion) impairment on the value of the Porsche brand, booked after the sports-car subsidiary’s outlook for future performance deteriorated.
Union talks
The grim numbers are expected to strengthen the hand of CEO Oliver Blume and his management team as they press unions for cost cuts. Volkswagen’s restructuring plans could put 100,000 jobs worldwide at risk and may force the closure of three VW plants, in Hannover, Emden, and Zwickau, along with Audi’s facility in Neckarsulm.
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