Volkswagen Lowers Profit Outlook for 2026 Due to Porsche Impairment and Weakness in China
Volkswagen has revised its profit outlook downward for the year ending September 30, 2026. The German automaker cited a €6 billion non-cash goodwill impairment at Porsche due to an updated long-term plan that lowered enterprise value assumptions. Additional factors include weaker sales in China and restructuring costs from expanded early retirement provisions and plant closures. Volkswagen now expects group revenue of approximately €315 billion for 2026, slightly below its previous guidance range but close to the midpoint. The company also cut its operating return on sales forecast to as high as 1%, down sharply from a prior target of between 4% and 5.5%. Special items totaling around €10 billion are expected to impact full-year profits. The impairment at Porsche is linked to an anticipated shift toward battery-electric vehicles, which has affected Audi and Volkswagen Passenger Cars more than originally forecasted.
Topics: china_performance goodwill_impairment profit_outlook restructuring