For Volkswagen, the end of the crisis still seems far away. The German automotive giant today announced a loss of 5.8 billion euros in the third quarter of 2026, a worsening figure compared to the loss of 1.1 billion euros recorded in the same period of the previous year. Turnover fell by 6.3% to 75.3 billion euros.
Because Volkswagen’s accounts are in the red
Weighing on the accounts are factors and dynamics that are underway not today: the retreat of the group in China, the costs linked to the ecological transition and the decline in demand. The group had already warned last month that annual profits would suffer a negative impact of 10 billion euros, largely due to the devaluation of the stake held in Porsche, which is also struggling in the Chinese market.
The restructuring plan
Volkswagen has announced a drastic and painful restructuring plan that will cost 31 billion euros. Media reports say the fate of 100-120,000 workers at risk of their jobs by 2030 hangs in the balance. “What matters now is rapid and consistent implementation,” Chief Financial Officer Arno Antlitz said in a statement. “We cannot waste time; we must act quickly and decisively.”
The change of strategy in China
Volkswagen is also changing its strategy in China, abandoning the slogan “In China, for China” in favor of a new approach called “In China, beyond China”. The European giant’s idea is to exploit its Chinese joint ventures to expand into the markets of South-East Asia, Southern Africa and South America. Currently, the group already exports vehicles produced in China to several destinations, including the Middle East, Kazakhstan and Uzbekistan. According to the new strategy, technologies developed in China will form the basis for vehicles – petrol, electric or hybrid – intended for emerging markets.
“We aim to export at least 300,000 cars per year by 2030,” said Ralf Brandstatter, head of Volkswagen’s business in China, “but our ambition goes beyond simply exporting vehicles.”