Volkswagen reports 6.5 billion dollar quarterly loss

Volkswagen reported an after-tax loss of 5.8 billion euros, or 6.5 billion dollars, for the three-month period ending in September. The company announced the figures Thursday from its headquarters in Frankfurt. The deficit stems from a combination of weak consumer demand and several large one-time accounting charges.

Sales revenue fell by 6.3 percent to 80.3 billion euros compared to the same quarter last year. A major factor in the bottom line was a 6.4 billion euro reduction in the value of Volkswagen's investment in Porsche. The luxury carmaker's declining valuation required the parent company to lower the asset value on its books.

The German market continues to present difficulties for the automaker. Demand for vehicles has dropped while local competitors engage in aggressive price wars. Additionally, tariffs imposed by the United States have increased costs for exports. Profit margins have also narrowed as consumers shift toward electric vehicles, which typically generate less profit per unit than traditional gas-powered cars.

Chief Financial Officer Arno Antlitz stated that the year-to-date results show the company cannot waste time. He said the firm must act quickly and decisively to address the financial strain. The company is currently undergoing a restructuring process aimed at cutting costs.

That plan includes the potential elimination of up to 100,000 jobs across the global workforce. The restructuring also calls for the closure of four manufacturing plants located in Germany. These measures are part of an effort to stabilize the company's finances amid shifting global market conditions.