{"id":3042,"date":"2026-09-18T16:43:13","date_gmt":"2026-09-18T16:43:13","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2026\/09\/18\/volkswagen-stock-plunges-as-e10b-hit-forces-2026-profit-outlook-cut\/"},"modified":"2026-09-18T16:43:13","modified_gmt":"2026-09-18T16:43:13","slug":"volkswagen-stock-plunges-as-e10b-hit-forces-2026-profit-outlook-cut","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2026\/09\/18\/volkswagen-stock-plunges-as-e10b-hit-forces-2026-profit-outlook-cut\/","title":{"rendered":"Volkswagen stock plunges as \u20ac10B hit forces 2026 profit outlook cut"},"content":{"rendered":"
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Volkswagen shares fell 5% after slashing its 2026 profit outlook on Friday, citing a sharp contraction in China’s car market, the rising cost of its job-cutting plan, and a major write-down on its stake in Porsche AG.<\/p>\n

Europe’s largest automaker now expects an operating return on sales of no more than 1% for the year, down from its previous guidance of 4% to 5.5%.<\/p>\n

Shares fell as much as 7.5%, marking the stock’s biggest intraday drop in a year, and the selloff spread to rivals BMW and Mercedes-Benz.<\/p>\n

Where the \u20ac10 billion hit is coming from<\/h2>\n

Volkswagen said it expects negative effects totaling roughly \u20ac10 billion to weigh on this year’s results.<\/p>\n

A \u20ac6 billion write-down on the value of its Porsche AG stake accounts for a large share of that figure.<\/p>\n

The rest reflects provisions tied to a hard-won agreement with workers reached this month, which will double Volkswagen’s planned job cuts to 100,000 globally.<\/p>\n

China remains the core problem<\/h2>\n

China, Volkswagen’s largest market, continues to be the company’s biggest drag.<\/p>\n

China’s overall car market has shrunk by more than a fifth through August this year, hit by an extended real estate crisis weighing on consumer spending.<\/p>\n

The decline has hit Volkswagen even harder than the broader market, as the company struggles to offer electric vehicles competitive with local Chinese brands.<\/p>\n

Volkswagen’s own first-half results, reported earlier this year, showed the strain building well before Friday’s announcement.<\/p>\n

First-half revenue stood at \u20ac158.1 billion, while operating profit fell 11.6% to \u20ac5.9 billion, an operating margin of 3.8%, already below the low end of the company’s prior full-year guidance range.<\/p>\n

China sales fell 20% in the first half of 2026, the company said in July, even as electric vehicle orders in Europe rose more than 50% in the second quarter.<\/p>\n

A guidance cut that keeps getting worse<\/h2>\n

Friday’s announcement marks the second time this year Volkswagen has lowered its 2026 outlook.<\/p>\n

In July, the company cut its expected sales revenue range to between a 3% decline and flat growth, while still maintaining its operating margin guidance of 4% to 5.5% at the time.<\/p>\n

That guidance has now been abandoned entirely.<\/p>\n

Volkswagen has also been grappling with underused plant capacity in Germany, adding to its cost pressures even as it pushes through a broader transformation program covering products, technology and its overall business structure.<\/p>\n

Investors will now be watching whether Volkswagen can stabilize its China business and offset rising costs through its restructuring plan, or whether Friday’s 1% target becomes the starting point for further cuts rather than a floor.<\/p>\n

Operating return on sales has fallen every year since 2022, from around 8% that year to roughly 6% in 2023, near 5% in 2024, and just over 2% in 2025.<\/p>\n

The originally guided 2026 range of 4% to 5.5% would have marked a rare improvement on that trend.<\/p>\n

Instead, the updated 1% forecast makes 2026 set to be Volkswagen’s weakest year for profitability across the entire period shown. <\/p>\n<\/p>\n

The post Volkswagen stock plunges as \u20ac10B hit forces 2026 profit outlook cut<\/a> appeared first on Invezz<\/a><\/p>\n

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Volkswagen shares fell 5% after slashing its 2026 profit outlook on Friday, citing a sharp contraction in China’s car market, the rising cost of its job-cutting plan, and a major write-down on its stake in Porsche AG.Europe’s largest automaker now expects an operating return on sales of no more than 1% for the year, down…<\/p>\n","protected":false},"author":1,"featured_media":3043,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3042","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/3042","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=3042"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/3042\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/3043"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=3042"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=3042"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=3042"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}