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VW cuts 2026 profit outlook on Porsche impairment, China woes
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Volkswagen has lowered its 2026 profit guidance, citing a €6 billion ($6.88 billion) non-cash Porsche goodwill impairment, persistent weakness in China, and additional restructuring charges. The German carmaker now expects group sales revenue of approximately €315 billion for 2026, broadly in line with the midpoint of its earlier guidance range of -3% to 0%, down from €321.9 billion in 2025. Volkswagen has reduced its operating return on sales forecast to as much as 1%, a sharp drop from the previous 4% to 5.5% range and well below the 4.1% average analyst estimate. Special items totaling roughly €10 billion are expected to weigh on operating profit for the full year. Excluding these items, the full-year operating return on sales would be around 4%. The company attributed the revised guidance to persistent weakness in China combined with a quicker-than-expected shift towards battery-electric vehicles, particularly impacting Audi and the VW Passenger Cars brand. An update to Porsche's long-term planning triggered an impairment test resulting in the €6 billion non-cash goodwill charge. Further restructuring expenses are anticipated from expanded early retirement provisions and the planned sale of VW's Osnabrück plant. German newspaper Handelsblatt separately reported that Volkswagen regards a further 4,000 roles at Porsche as surplus to requirements, and Porsche CEO Michael Leiters is reportedly drawing up a new strategy built around a smaller model line-up.
Source report
GlobalData | Mon, September 21, 2026 at 4:02 AM PDT | 2 min read
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Volkswagen has lowered its 2026 profit guidance, citing a €6 billion ($6.88 billion) non-cash Porsche goodwill impairment, weaker trading in China, and additional restructuring charges.
Following the revised forecast, German newspaper Handelsblatt reported separately that Volkswagen considers a further 4,000 roles at Porsche as surplus to requirements. Porsche CEO Michael Leiters is reportedly developing a new strategy centered on a smaller model lineup.
Revised Financial Outlook
Volkswagen now expects group sales revenue of approximately €315 billion for 2026, broadly in line with the midpoint of its earlier guidance range of -3% to 0%, down from €321.9 billion in 2025.
The carmaker has reduced its operating return on sales forecast to as much as 1%, a sharp decline from the previous 4% to 5.5% range and well below the 4.1% average analyst estimate. The figure stood at 2.8% in 2025.
Special items totaling roughly €10 billion are expected to weigh on operating profit across the full year, of which €0.9 billion was already booked in the first half of 2026. Excluding these items, Volkswagen stated its full-year operating return on sales would be around 4%.
Key Factors Behind the Revision
The company attributed the revised guidance to:
- Persistent weakness in China, combined with a faster-than-expected shift toward battery-electric vehicles
- Developments that would fall short of original forecasts, with particular impact on Audi and the VW Passenger Cars brand
An update to Porsche's long-term planning led to revised assumptions underpinning the sports car maker's enterprise value, including its medium-term corridor of 10% to 15%. This triggered an impairment test, resulting in a non-cash goodwill charge of approximately €6 billion, to be recorded in third-quarter operating profit.
Restructuring and Additional Charges
Further restructuring expenses are anticipated from:
- Expanded early retirement provisions
- The planned sale of VW's Osnabrück manufacturing plant
Both measures are linked to the "Future of Volkswagen" agreement concluded in late 2024. Non-cash impairments at fully consolidated units in China are also expected.
Together, these three elements are projected to reduce results by around €2 billion in the second half of the year, with the bulk of the impact concentrated in the third quarter.
Upcoming Results
Volkswagen is due to publish interim results for the period ending 30 September 2026 on 29 October 2026.
Earlier this month, the company's supervisory board approved Future Plan 2030, which includes a further groupwide reduction of approximately 50,000 positions, including management roles.
"VW cuts 2026 profit outlook on Porsche impairment, China woes" was originally created and published by Just Auto, a GlobalData owned brand.
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Volkswagen slashes 2026 profit outlook to 1% margin on €6B Porsche writedown and China slump