Volkswagen Group nine-month operating result falls 98.7% to €71m after Porsche impairment

Electric vehicles and pricing pressure

Volkswagen also cited the weak Chinese market, rising global pricing and competitive pressure, and a higher share of lower-margin electric vehicles in sales as drags on earnings. Chief financial officer and chief operating officer Arno Antlitz said: "The market success of our electric vehicles is putting additional pressure on our earnings, as we currently earn less from electric vehicles than from combustion-engine vehicles."

European order intake rose 4% to 3.0 million vehicles over the nine months, with battery electric orders up 39%. Electric vehicles made up around 40% of the European order bank at the end of September, and the Electric Urban Car Family had received around 150,000 orders.

For the Core brand group, Volkswagen said the rapid BEV ramp-up weighed on earnings and that volumes and earnings contributions from more profitable combustion-engine vehicles declined. Core's operating result fell to €4.3 billion from €4.7 billion. The Progressive brand group's operating result fell 26% to €1.2 billion, which Volkswagen attributes in particular to declining volumes in China and North America and negative residual value effects, partly offset by lower CO2 provision and restructuring expenses.

Group sales revenue for the nine months was €233.4 billion, against €238.7 billion a year earlier. Vehicle sales fell 11% to 5.9 million from 6.6 million; that total includes the equity-accounted Chinese joint ventures, and excluding them sales were down about 1%.

Volkswagen Group Mobility, the group's financial services arm, reported an operating result of €2.7 billion, down 7%, which the company attributes to higher risk provisions. Its contract portfolio grew 2% to 27.85 million.

Cost programme and outlook

Antlitz said the group's Future Plan covers a streamlined model range, simpler structures, lower vehicle and overhead costs, more efficient plants and faster technology development. "Together, these form a comprehensive cost program of around 31 billion euros. What matters now is swift and consistent implementation," he said.

For 2026 as a whole, Volkswagen expects group sales revenue of around €315 billion and an operating return on sales of up to 1%. The forecast assumes the current tariff situation remains unchanged and excludes any impact from escalation in the Middle East, as well as effects of Group Target Picture 2030 and the Everllence stake sale.