The supervisory board of Volkswagen recommended cutting 4,100 jobs at Porsche to resolve a €700 million overhead shortfall. Tens of thousands of workers across Germany staged protests on Monday seeking job security after the group's profit warning. These measures mark a reversal for Porsche, which analysts say is no longer the group's primary profit driver.
Tuesday, October 20, 2026
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Volkswagen Takes €6 Billion Writedown on Porsche and Cuts 2026 Margin to 1%
Earnings29 days ago
A decline in the luxury car market caused a downward revision of profitability targets for Germany's largest auto group. Volkswagen cut its 2026 margin forecast to 1% at best and recorded a €6 billion writedown on its 75% stake in Porsche, as the brand's margins fell below the wider group's average. The luxury carmaker has been hammered by costly electric vehicle missteps, pressure from U.S. tariffs, and a retreat in China where deliveries more than halved over the last 4 years.
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