Germany news: Volkwagen posts 3rd quarter losses of nearly €6 billion amid competition from China

Germany news: Volkwagen posts 3rd quarter losses of nearly €6 bln October 29, 2026What you need to know - Volkswagen (VW) posts 3rd quarter losses of €5.8 billion ($6.46 bln) - VW has been struggling to keep pace with competition from China and to transition to electric vehicles - Chancellor Friedrich Merz is in South Korea at the end of his Asia tour Here are the main headlines from and about Germany on Thursday, October 29, 2026: WATCH: Why big automakers are losing China They were once top sellers in China. Now the likes of Volkswagen, Toyota and Honda are losing ground to a new generation of Chinese carmakers. What happened? VW reports 3rd quarter losses of €5.8 billion Volkswagen (VW) reported third quarter losses of €5.8 billion ($6.5 billion) on Thursday, as it faces rising competition from China. Germany's biggest car maker had reported a loss of just over €1.07 billion in the same period last year. Volkswagen, like other car makers, has struggled to keep pace with fierce competition from China, the world's biggest car market. VW has also struggled with the transition to electric vehicles and with declining demand. Volkswagen last month warned that its 10-brand group, which includes makers such as Audi, Seat and Skoda, was facing a 10-billion-euro hit to its annual profits. The most significant hit came from Porsche, Volkswagen's luxury sports car and SUV subsidiary. Porsche, which was once a major driver of profits for the VW group, was also one of the main factors behind VW's quarterly losses in 2025. The luxury brand has been hit by a sales slump in China, US tariff policy and its electric vehicle strategy. VW announced this year that it plans to cut over 100,000 jobs across the group by the end of the decade as it tries to reduce costs. It announced on Thursday that its restructuring would cost the company 31 billion euros. The company is considering or has decided to shut down multiple German factories — including plants in Zwickau, Emden, Hanover, and Neckarsulm. "What matters now is swift and consistent implementation," Arno Antlitz, VW's chief financial officer said in a statement. "We cannot lose any time and need to act quickly and decisively." Welcome to our coverage Guten Morgen from the DW newsroom in Bonn on the banks of the Rhine, which is bathed in autumnal hues and fog as we near the end of October. We open today's coverage of Germany with the news that Volkswagen's recent struggles have translated into huge losses. The country's largest auto manufacturer, which has already announced job cuts of 100,000 by the end of the decade, reported third quarter losses of nearly 6 billion euro. On the other side of the world, Chancellor Friedrich Merz is concluding his tour of East Asia with a visit to South Korea, while President Frank-Walter Steinmeier continues his visit to China. Stay tuned as we bring you more on those and other stories making headlines in Germany on Thursday.