Volkswagen Warns of €10 Billion Profit Hit as Porsche Writedown Deepens Crisis

Volkswagen warned investors on September 19, 2026 of a €10 billion (roughly $11.4B) hit to full-year 2026 earnings, cutting its expected operating margin to about 1% from a prior 4–5.5% guidance range (the core operating margin excluding special charges is still expected near 4%). The bulk of the charge — a €6 billion goodwill impairment on Porsche — reflects more modest expectations for the sports-car maker's future performance after it was hit hard by US tariffs and collapsing Chinese demand for foreign luxury brands. The impairment lands two weeks after VW agreed a major transformation deal with its own shareholders that includes roughly 50,000 further job cuts, a corporate restructuring and possible plant closures, deepening the crisis at Europe's largest carmaker.