Volkswagen cuts profit outlook as Porsche drives $11.5 billion hit

Volkswagen has cut its 2026 profit outlook after flagging €10 billion (US$11.5 billion) in one-off items tied to its stake in Porsche, job-cut provisions, and weakness in China. The automaker now expects a profit margin of no more than 1% in 2026, down from a prior forecast of 4.0% to 5.5%. Updated mid-term assumptions for Porsche, where Volkswagen holds a 75.4% stake, led to an impairment of about €6 billion. Porsche has been hit particularly by U.S. tariffs and shrinking demand for foreign luxury brands in China. Shares of Volkswagen fell 5.6%; Porsche dropped 3.3%. Volkswagen says further deterioration and a faster shift toward battery-electric demand will lower expectations for Audi and Volkswagen passenger cars.