Volkswagen’s losses deepened in the third quarter as the German carmaker wrestled with a downturn in China and warned that its earnings power was “too low” to sustain investment in new technologies.
Europe’s largest auto group posted an operating loss of €5.9bn for the three months to September, compared with a loss of €1.3bn a year earlier. That was far bigger than analysts’ expectations for a loss of €2.6bn.
Revenue declined 6.3 per cent year on year to €75.3bn as deliveries to China slumped heavily while strong sales of electric vehicles in Europe eroded its margins compared with combustion engine models. For January to September, deliveries to China dropped 30 per cent.
Even excluding one-off writedowns of €8bn, its operating profit margin for the nine-month period was 3.8 per cent. Shares in the group fell 1 per cent in early trading on Thursday.
The group, which also owns Porsche, Audi, Bentley and Lamborghini, has embarked on a historic restructuring programme that could lead to the loss of more than 100,000 jobs and the ending of vehicle production at four German plants.
Source: Financial Times Companies · Summarized by HeadlinesBriefing