Volkswagen’s woes are deepening with the news that the company took a €5.8 billion ($9.23 billion) loss in the third quarter of the European financial year. VW has been in trouble for a fair while, but the latest hit is especially savage compared to its Q3 result in 2025, which was a loss of $1.7billion.

The shocking result comes hot on the heels of Volkswagen’s workers threatening to strike unless the company drops its plan to cancel wage agreements with German staff, which would likely lead to tough renegotiations on working hours and remuneration. The industrial action, which would begin from January, comes after VW revealed plans to cut 100,000 jobs and close as many as four factories in its home country.

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Foremost among the reasons for the VW group’s immense Q3 loss is Porsche, which was the subject of a €6.4 billion ($10.19 billion) write-down as the brand struggled with sales in China and the effects of American tariffs.  

Sales fell 6.3 per cent in the quarter, with worldwide vehicle deliveries slumping by 14.3 per cent. A shocking sales fall of almost 40 per cent in China was a big driver of both results.

While the Porsche blow is a one-off, Volkswagen’s sales struggles and failure to successfully focus on EVs means the company finds itself in a dire position, as WhichCar by Wheels detailed last month. But you don’t have to take our word for it.

“The nine-month results make one thing clear: we cannot afford to lose any time. We must act quickly and decisively. What matters now is swift and consistent implementation,” VW chief financial officer Arno Antlitz said.

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Earlier this week, the Volkswagen Works Council in Germany, which represents employees, claimed the VW group’s executive board plans to freeze salaries of all 660,000 staff worldwide until 2030.

The $9.23 billion loss is the worst Volkswagen has suffered since 2015, at the height of the “Dieselgate” scandal that erupted when the company was caught cheating American emissions tests by using illegal software.