Volkswagen shares plunge as profit outlook slashed and Porsche stake write-down hits results

Volkswagen disclosed that its operating earnings for one outlet year will be minimal, a dramatic cut from previous expectations. The company attributed the downgrade primarily to a substantial write-down on its stake in Porsche, as well as costs linked to a restructuring program and the upcoming disposal of its Osnabrück factory. Additional pressures stem from a soft market in China and rising competition from Chinese manufacturers, especially in the electric-vehicle segment, which is eroding margins for brands such as VW and Audi.

The news triggered a rapid sell-off in Volkswagen's stock and also weighed on the shares of Porsche SE and Porsche AG. Analysts noted that most of the special items are likely to be recorded in the third quarter. The decline marks the steepest single-day loss for Volkswagen since 2022.