Volkswagen Presses Ahead With Restructuring as Headwinds Mount
By Dominic Chopping
Volkswagen backed full-year guidance that was cut last month but said it must move fast to implement restructuring plans as it continues to face headwinds from multiple directions.
The German automaker slashed earnings guidance in September after flagging around 10 billion euros ($11.15 billion) of impairment charges this year linked to its stake in Porsche, tough trading in China and its restructuring efforts.
That guidance targets group sales revenue of around 315 billion euros in 2026, an operating return on sales of up to 1% and net cash flow in the automotive unit of 3 billion to 6 billion euros.
As global challenges in the auto industry intensify, including U.S. tariffs and growing competition from Chinese rivals both in China and in Europe, Volkswagen has pledged to accelerate efforts cut its cost base.
The company's supervisory board last month approved a plan to double job losses at the automaker to 100,000 and halve its model portfolio. The company employed 652,000 people as of June, according to its website.
It said Thursday that in conjunction with its third-quarter and nine-month earnings report that swift and consistent implementation of the plan is what matters now.
"The nine-month results make one thing clear: We cannot afford to lose any time and must act quickly and decisively," Chief Financial Officer Arno Antlitz said.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 29, 2026 03:16 ET (07:16 GMT)
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