Volkswagen's Profit Declined in the Third Quarter

Volkswagen announced that its operating profit for the third quarter fell by 42% due to weak performance in its core passenger car unit and high costs associated with model renewals. In the first nine months of the year, the operating return on sales in the core unit decreased to 2%. Earnings before interest and taxes (EBIT) dropped to €2.86 billion during the July-September period, closely aligning with LSEG's average estimate of €2.80 billion. Chief Financial Officer Arno Antlitz stated, "This situation underscores the urgent need for significant cost reductions and efficiency gains." While Europe's largest car manufacturer reduced its annual outlook twice this quarter, rivals such as BMW and Mercedes-Benz also faced challenges. The second round of negotiations between Volkswagen and the powerful German union IG Metall will start on Wednesday, following a threat from the works council chairman to cut off talks and initiate a strike.