Volkswagen shares tumbled 7% as the firm slashed its 2026 margin outlook to 1% and booked €10 billion in charges, citing a shrinking Chinese market and lower EV profitability.
Volkswagen slashed its 2026 operating margin forecast to no more than 1% and expects around €10 billion in charges, sending shares down more than 7%.
Volkswagen took a €6 billion writedown on Porsche due to revised long-term expectations for the sports-car maker.
Volkswagen shares dropped over 7% after the automaker slashed its 2026 operating margin forecast to 1% and announced €10 billion in restructuring charges. The company faces severe headwinds from a 20% contraction in the Chinese market and lower profitability on electric vehicle sales. A €6 billion writedown on Porsche further underscores the deepening crisis facing the European automotive giant.
The downgrade is driven by a 20% contraction in the Chinese market, high restructuring costs, and lower margins on electric vehicles compared to combustion-engine models.
Volkswagen recorded a €6 billion writedown on Porsche, reflecting revised long-term expectations for the sports-car brand as part of a broader €10 billion charge.