Volkswagen cuts its outlook as Porsche strain drives €10 billion in charges.

Volkswagen cut its 2026 outlook after announcing about €10 billion in one-off costs, most linked to Porsche. Reuters reported that the group expects an operating profit margin of no more than 1%, down from its previous 4% to 5.5% range, and will take a €6 billion impairment tied to changed Porsche assumptions.

Volkswagen shares closed 5.6% lower, while Porsche and Porsche SE fell 3.3% and 4.9%, respectively. The warning reflects the combined pressure of U.S. tariffs, softer Chinese demand and the cost of restructuring a large industrial group during the transition to electric vehicles.