The Volkswagen Group announced its poorest quarterly results in over a decade, with an operating loss of €5.86 billion for the period from July 1 through September 30, 2027. The loss was significantly influenced by a €6.4 billion non-cash write-down of Porsche assets and ongoing sales declines in China. Chief Financial Officer Arno Antlitz stated in a video message that the company must take rapid and decisive action to address its challenges.
The quarterly operating loss was approximately four times larger than the same period a year prior, marking the company’s most difficult performance since the Dieselgate crisis in 2015. Revenue declined 6.3 percent year-over-year to €75.3 billion, while deliveries, unit sales, and production fell roughly 15 percent as the manufacturer adjusted output to match reduced demand. For the nine-month period, gross sales reached €233.4 billion, nearly matching the prior year, though sales volume dropped 11 percent compared to 2025. The company’s profit margin for the year is now projected at just 1 percent, substantially below the 5 percent forecast made at the start of the year.
China represents a particular area of concern, as the company faces intensifying competition from domestic manufacturers in what was once a key growth market. However, Volkswagen’s Chinese joint ventures with SAIC, FAW, Anhui, and Xpeng have collaboratively developed Vega, a new technology package encompassing software, electronics, and a dedicated electric vehicle platform. This marks the first locally developed technology foundation available to a non-Chinese automaker operating in the Chinese market.
The company is advancing autonomous driving capabilities through its software subsidiary Carizon, which has developed the HyperSense 8 ADAS system set to enter series production in seven electrified models before the end of this year. Level 3 autonomous systems are scheduled for series production by 2027, with Level 4 capabilities targeted for 2029. Despite headwinds, electric vehicle sales increased 39 percent year-over-year. Volkswagen’s strategic pivot from “In China, for China” to “In China, Beyond China” positions Chinese operations as both a research hub and export node, with vehicles already being exported to the Middle East, Central Asia, and Africa, with expansion planned to Mexico, Egypt, Vietnam, and Southeast Asia by the end of 2026.
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