Volkswagen posts 5.8bn euro loss as Chinese competition bites

Volkswagen recorded a third-quarter loss of 5.8 billion euros, compared with a 1.1 billion euro loss a year earlier, Business Recorder reported. The German automaker’s sales declined 6.3 percent to 75.3 billion euros, while worldwide vehicle deliveries dropped 14.3 percent and deliveries in China fell almost 40 percent.

The company cited intense competition from Chinese manufacturers, weaker demand and the expense of shifting to electric vehicles as pressures on its business. It said restructuring would cost 31 billion euros and plans to eliminate 120,000 jobs across the group by 2030; excluding 8 billion euros in writedowns and restructuring expenses, its quarterly profit margin would have been 3.8 percent. Volkswagen had also warned last month of a 10 billion euro impact on annual profit, mainly related to a writedown on its Porsche stake.