Volkswagen reported an operational loss of 5,9 milliarder euro in tredje kvartal 2026, driven by challenges at Porsche and the business in China, ABC Nyheter reported. The loss far exceeded market expectations, pushing Europe’s largest automaker into what Atle Falch Tuverud calls a critical situation as vehicle manufacturers across Germany announce sweeping job cuts and factory reviews.
Volkswagen Posts 5,9 milliarder euro Loss as China Sales Collapse
The third-quarter financial results revealed a net loss of minus 2,7 milliarder euro, contrasting sharply with a 3,4 milliarder euro profit during the same period the previous year. Konsernets omsetning falt med 6,3 prosent til 75,3 milliarder euro i kvartalet, while the first nine months of the year yielded an operating result of just 71 million euro—a 98.7 percent drop from 5,4 milliarder euro in the prior year. Volkswagen Chief Financial Officer Arno Antlitz stated during the earnings presentation that the company cannot afford to waste time and must act swiftly and decisively.
Atle Falch Tuverud, editor-in-chief of BilNytt.no, told ABC Nyheter that Volkswagen is losing market share in Europe to the Chinese and is struggling in China. Vehicle sales through Volkswagen’s Chinese joint ventures dropped 35 percent to 1.22 million units during the first nine months of the year, dragging the regional operation from profit to loss.
ID. Golf Development Halted as Restructuring Deepens
Volkswagen has indefinitely paused the development of its upcoming electric ID. Golf model, which was originally scheduled for a 2028 release, TV 2 reported. In an internal memo cited by Automotive News, Thomas Schaefer stated that the company simply cannot afford the project right now. Development on the scalable systems platform (SSP) has also slipped to 2029 at the earliest, delayed by software issues at American partner Rivian and rising engineering costs, according to Motor1.com coverage noted by TV 2.
The setbacks accompany a broader agreement with German labor unions to eliminate 50,000 jobs by 2030, with management evaluating potential closures of domestic manufacturing plants in Germany. Concurrently, Volkswagen’s China office announced plans to export at least 300,000 vehicles built in Hefei to markets in Asia, the Middle East, and South America by 2030, while also exporting proprietary Chinese vehicle technologies globally.
German Automotive Giants Offer Severance Packages to Thousands
Volkswagen is not alone in downsizing its workforce amid slowing electric vehicle adoption and rising Asian competition. BMW offered severance packages to nearly half of its 85,000 permanent employees in Germany with the goal of shedding 8,000 jobs by 2027. Mercedes-Benz has similarly outlined voluntary departure programs, while the German automotive industry association VDA has warned that up to 225,000 jobs could disappear across the sector by 2035.
Astrid Sverresdotter Dypvik, a historian and author of several books on Germany, told ABC Nyheter that the automotive sector forms the backbone of the nation’s export surplus and modern industrial identity. Dypvik noted that the industry’s struggles and the stagnation of Europe’s largest economy are dampening national morale.
Volkswagen joint-venture deliveries drop in China
Volkswagen’s joint-venture vehicle deliveries in China dropped by approximately 35 percent during the first nine months of the year, turning a primary source of profit into a loss.
Frequently Asked Questions About the German Auto Crisis
Why are German automakers struggling in China?
As reported by ABC Nyheter, German brands are facing strong competition from Chinese producers.
How many jobs are slated for elimination at Volkswagen?
Volkswagen has agreed with labor unions to cut 50,000 jobs globally by 2030 as part of its ongoing restructuring process.
What is happening to the electric ID. Golf?
TV 2 reported that Volkswagen has paused the development of the ID. Golf on an indefinite basis, pushing its potential market arrival past its originally anticipated timeline toward the end of the decade.
Which other German car brands are cutting staff?
BMW has offered severance packages to cut 8,000 jobs by 2027, and Mercedes-Benz has introduced voluntary departure programs amid low electric vehicle margins and competition from China, as detailed by ABC Nyheter.
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