VW posts $6.5 billion Q3 loss as Chinese EVs bring ruin to EU markets

 Legendary German car manufacturer and European juggernaut Volkswagen has posted a loss of $6.5 billion for the third quarter as it struggles with fierce competition from China.

The $6.5 billion figure is down from a $1.2 billion loss for the same period last year; the view looks grim for VW as it reported revenue falling 6.3 percent in the quarter to $84 billion coupled with overall vehicle deliveries falling 14.3 percent worldwide – 40 percent in China.

The main cost for VW and peers is the significant cost of switching from conventional to EV vehicle production, the issue being compounded by severe cutthroat competition with Chinese brands inside China, which is the world’s largest car market, and abroad.

Volkswagen revealed plans on Wednesday to cut 120,000 jobs across its 10-brand group by 2030 in an effort to remediate the slump toward insolvency; the company said the restructuring would cost it $34 billion.