Volkswagen is Struggling
If you remember the 2015 Dieselgate scandal, you’d know that VW is no stranger to losing a ton of money all at once. Unfortunately, it’s “hello darkness, my old friend” for VW again in Q3 of 2026, as the company has just posted its biggest quarterly operating loss in over a decade, totalling $6.6 billion in just three months.
This marks the automaker’s biggest operating loss post-Dieselgate scandal, and this time it’s not because of emissions, but because of a Porsche write-down and a country that VW once cornered.
VW
The Porsche Write-Down
In Q3 of 2026, the second-largest automaker in the world has just reported a big blow to its portfolio. The company was hit by a write-down on its stake in Porsche, which is not doing too well at the moment. The industry is slipping in terms of sales across the board. Porsche is rather unfazed by the situation, opting to keep its composure and confidence in its brand even as sales slump in 2026.
However, Volkswagen can’t seem to stop the bleeding as of late. The profit outlook for the brand fell to 1% towards the end of Q3 in September this year, and the brand’s EVs have also tanked in America. In addition to that, there is a reported $8.955 billion in one-off charges that the brand faced, nearly enough to top Dieselgate records.
Chinese Competition
Volkswagen is still a rather formidable brand in China. It still has a large market share and was still able to reclaim the number one spot in market share for the country in March 2026. However, stiff competition and shrinking margins may erode VW’s position in the market further.
The real threat to VW lies in other markets where Chinese cars are being introduced. Chinese electric vehicles are gaining traction in Europe, and Chinese brands are encroaching on VW’s home continent, similar to what VW did in China. Cue the “oh, how the tables have turned” statement here.
Volkswagen is no longer the dominant force that it once was in 2019. Seven years later, the brand may now have to play defense as its market share erodes not just in China, but throughout Europe as well.
Volkswagen
Back to the Drawing Board
The management’s response to this massive loss is as it was before, when the profit outlook dropped to 1%: Restructuring. “We must fundamentally reshape our business model,” said finance chief Arno Antliz while presenting the results of the third quarter of 2026.
About 100,000 job cuts are planned by the automaker, and up to four VW plants will close down in Germany, signalling a radical backtrack as Volkswagen’s top brass scrambles to stop the bleeding.
Investors have already written off 2026 as a “transitional year” and took the earnings call in stride, according to sources. We are hoping that VW’s tightening a belt and not a noose at this stage, but the restructuring may bring about more drama especially when it comes to dealing with labor unions, a fight that we have yet to see. There are also reports that VW is freezing the pay of 660,000 workers until 2026, which could fan the flames even more if true.
About the author
Earl Lee
News Editor