Volkswagen has reported a €5.8 billion quarterly loss as German industry struggles with high energy costs and global competition

German automotive giant Volkswagen has reported a €5.8 billion ($6.5 billion) net loss for the third quarter of 2026, up from €1.1 billion a year earlier, as the country’s manufacturing sector faces growing economic pressure.

Europe’s largest carmaker announced the results on Thursday. Revenue fell 6.3% to €75.3 billion, and vehicle deliveries dropped 14.3%.

“US tariffs weigh on us, the Chinese market is shrinking, and competitive pressure in Europe is increasing significantly,” VW Group Chief Financial and Operating Officer Arno Antlitz said in a statement.

Volkswagen faces growing competition from cheaper Chinese vehicles in Europe, and its expanding electric car business remains less profitable than that of conventional models.

The results follow the auto giant’s announcement in September of sweeping restructuring plans that could eliminate up to 100,000 jobs and leave four…