Volkswagen swings to 1.3-billion euro loss in Q3 on tariff, Porsche woes

Volkswagen swings to 1.3-billion euro loss in Q3 on tariff, Porsche woes

Volkswagen made a 1.3-billion-euro ($1.52 billion) operating loss in the third quarter, hit by billions of euros in costs from U.S. tariffs and a costly strategy reversal on electric vehicles at its subsidiary Porsche, the company said on Thursday.

The result, down from a 2.8-billion-euro operating profit for the group a year earlier, was less severe than the 1.7-billion-euro loss forecast by analysts in a poll by Visible Alpha.

Overall, tariffs as well as costs and writedowns relating to the product overhaul at Porsche led to 7.5 billion euros in charges for Volkswagen in the period ended September 30, while the transition to EVs also weighed on profitability, it said.

Volkswagen is under pressure to adapt to higher US import tariffs expected to cost the group up to 5 billion euros this year.

"Our focus will be – amongst others – on the targeted use of our scale and exploiting synergies within the group even more effectively," CFO Arno Antlitz said.

The company maintained its guidance on Thursday, forecasting a group operating margin this year in the range of 2-3% with revenues expected around the prior-year level.

($1 = 0.8575 euros)