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Volkswagen Group faces profit slump as Porsche margins decline
Volkswagen Group is facing significant financial pressure, driven largely by a downturn in the performance of its subsidiary, Porsche. The company has lowered its 2026 operating profit margin forecast to a maximum of 1%, a sharp decline from previous targets of 4% to 5.5%.
Porsche is a primary contributor to this decline. Volkswagen has recorded a €6 billion write-down on its stake in Porsche, primarily due to goodwill impairment. Porsche’s goodwill has dropped from €18.8 billion in 2022 to approximately €10 billion. Additionally, Porsche’s operating profit saw a massive decrease in 2025, falling by over 92% compared to the previous year.
The company is struggling with a significant loss of market share in China, where deliveries have fallen by more than 50% over the last four years. Competition from local Chinese electric vehicle manufacturers and a shift in consumer preference toward software-driven models have impacted Porsche’s traditional strengths.
In response to these challenges, Porsche plans to cut approximately 4,000 jobs to address cost gaps. This is part of a broader restructuring effort within the Volkswagen Group, which includes a long-term plan to optimize up to 100,000 positions across its various sectors.
Entities
China · Germany · Porsche · Volkswagen · Volkswagen Group · Škoda
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Porsche’s profit margins have fallen below the Volkswagen Group average and below those of Skoda. dailycarblog.com
- [● 2 SOURCES] Porsche deliveries in China have declined by more than 50% over the last four years. dailycarblog.com · news.cnyes.com
- [○ 1 SOURCE] Porsche’s goodwill decreased from €18.8 billion in 2022 to approximately €10 billion. dailycarblog.com
- [● 3 SOURCES] Volkswagen has written down €6 billion on its stake in Porsche. dailycarblog.com · www.199it.com · news.cnyes.com
- [● 2 SOURCES] Volkswagen Group has lowered its 2026 operating profit margin forecast to no more than 1%. www.199it.com · news.cnyes.com
- [○ 1 SOURCE] Porsche plans to cut approximately 4,000 more jobs to cover indirect cost gaps. www.199it.com