Automotive
Volkswagen takes $6.9 billion Porsche write-down as sales fall globally
Jalopnik reports that Volkswagen cited weak expectations for Porsche, whose profit margins slid below entry-level brand Škoda.
The short version
- Volkswagen issued a profit warning alongside a $6.9 billion write-down on its 75% stake in Porsche.[Jalopnik]
- The decision follows lower vehicle sales across North America, China, the Middle East, Africa, and India.[Jalopnik]
- Porsche's profit margins have fallen below Volkswagen's budget brand Škoda, according to reports.[Jalopnik]
- Despite market headwinds, an internal memo indicates Porsche is maintaining its medium-term profit margin target of 10% to 15%.[Jalopnik]
Key facts
- Volkswagen announced a $6.9 billion write-down on its 75% stake in Porsche following a profit warning.[Jalopnik]
- The write-down occurred shortly after Volkswagen agreed to eliminate 50,000 jobs as part of a restructuring plan.[Jalopnik]
- Porsche's profit margins dropped below those of Volkswagen's entry-level brand, Škoda.[Jalopnik]
- Porsche sales experienced declines in North America, China, the Middle East, Africa, and India.[Jalopnik]
- In an internal memo, CEO Michael Leiters stated Porsche is keeping its medium-term margin target of 10% to 15%.[Jalopnik]
What remains uncertain
- No updated financial forecast has been issued by Porsche for the current year or the medium term.[Jalopnik]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.