Volkswagen posts 5.8 billion euro loss in third quarter

Volkswagen shareholders absorbed a 5.8 billion euro, or $6.5 billion, after-tax loss for the July through September period. The German automaker’s revenue fell 6.3% to 80.3 billion euros compared to the same quarter a year ago. The drop in earnings leaves the company with less cash to fund its ongoing restructuring efforts.

The financial strain builds on months of pressure. Volkswagen has been fighting declining demand in China, where local competitors offer cheaper vehicles. U.S. import taxes imposed by President Donald Trump also cut into margins. The rise of electric vehicles added another layer of cost, as those models generate lower profits per unit than traditional gas engines.

A major factor in the quarterly loss was a 6.4 billion euro writedown. The company reduced the value of its ownership stake in Porsche to reflect the luxury brand’s lower market value. This one-time charge amplified the impact of weaker sales volumes across the group.

Chief Financial Officer Arno Antlitz said the results mean the company “cannot afford to lose any time and must act quickly and decisively.” Management plans to cut costs through a restructuring that may eliminate up to 100,000 jobs. The plan also includes closing four manufacturing plants in Germany.

The loss marks another difficult step in Volkswagen’s pivot toward a leaner operation. The company must now execute these cuts while managing lower revenue streams from both its domestic and international markets.