> ## Content Index
> Fetch the complete content index at: https://torquecafe.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# Porsche’s EV gamble costs Volkswagen $9.7 billion
- URL: https://torquecafe.com/car-news-porsches-ev-gamble-costs-volkswagen-9-7-billion/
- Published: 2026-09-21T01:38:53.000Z
- Updated: 2026-09-21T01:38:53.000Z
- Description: German car giant Volkswagen is preparing to take a big financial hit to keep Porsche afloat, amid a walkback in EV plans and impacts from key markets.
- Author: Jordan Mulach
- Tags: News, Industry

The Volkswagen Group is expecting to take home paltry profits in 2026, as it prepares to drop a large amount of cash to aid Porsche recover from its slump.

In a media release to investors, Volkswagen – which holds a 75 per cent stake in Porsche – announced it expects to spend around €6 billion (A$9.7 billion) on Porsche in non-cash impairments, impacting the Group’s third-quarter profits for the year.

“In connection with its updated long-term planning, Dr. Ing. h.c. F. Porsche AG \[the official business title of Porsche\] has informed Volkswagen AG about the expected development of its key financial data,” the release said. 

![](https://storage.ghost.io/c/a9/b3/a9b3e204-3117-4792-9a32-46184029df44/content/images/2026/09/2026-porsche-911-turbo-s-4.jpg)

Porsche 911

“As a result, Volkswagen has updated the medium- and long-term assumptions for determining the enterprise value, including the medium-term corridor of 10 to 15 percent communicated by Porsche. 

“The impairment test results in a non-cash impairment of around 6 billion euros for Volkswagen AG on goodwill allocated to the Porsche business segment, which will have a negative impact on the Volkswagen Group's operating profit in the third quarter of the current fiscal year.”

Porsche’s financial struggles have been a key issue in the past few years, and were understood to be largely behind it when in September last year, it made a U-turn on its EV plans.

[‘We were wrong’: Former Porsche boss makes frank admissionPorsche’s decision to make its best-selling Macan an electric vehicle has resulted in a sales drop, but the now-former CEO says he’d do the same thing again.![](https://storage.ghost.io/c/a9/b3/a9b3e204-3117-4792-9a32-46184029df44/content/images/icon/cropped-favicon-c81f1c65-d120-42c5-a10d-324ac6f91629.png)Torquecafe.comJordan Mulach![](https://storage.ghost.io/c/a9/b3/a9b3e204-3117-4792-9a32-46184029df44/content/images/thumbnail/crop_Porsche-Macan-Blue089-2b18c45b-9a58-4d8b-9a4c-921b836cd0d9.jpg)](https://torquecafe.com/porsche-news-macan-ice-axing-we-were-wrong-oliver-blume/)

Then-Porsche CEO Oliver Blume announced multiple changes to the brand’s future product lineup 12 months ago, spanning from the 718 sports car (Boxster and Cayman) receiving petrol variants alongside the planned EV version, a new flagship SUV, as well as a Macan-sized SUV with petrol and hybrid power by no later than 2028.

At the time, it was reported the move would cost its Volkswagen Group parent €5.1 billion ($9.1 billion), while the Stuttgart brand projected its operating profit would drop by €1.8 billion ($3.2 billion) in the 2025 financial year.

However, Porsche has continued to feel the pinch, particularly in China where demand is dwindling, as well as in the US where its sales are impacted by increased tariffs on imported vehicles.

There have also been rumours that the [internal combustion engine-powered 718 might not eventuate](https://torquecafe.com/porsche-news-718-ev-confirmed-petrol-power-under-cloud/), with the Boxster and Cayman to be revived as electric sports cars only.

[Porsche boss admits ‘our business model no longer works’German automotive icon Porsche is doing it tougher than first realised, with its CEO reportedly sounding the alarm internally.![](https://storage.ghost.io/c/a9/b3/a9b3e204-3117-4792-9a32-46184029df44/content/images/icon/cropped-favicon-2fa7784b-c74a-452b-b610-f06bea980f4b.png)Torquecafe.comJordan Mulach![](https://storage.ghost.io/c/a9/b3/a9b3e204-3117-4792-9a32-46184029df44/content/images/thumbnail/crop_2024PORSCHE_TAYCAN_DK_RACE_PROJECT_17608-Enhanced-NR-a97ba4fa-8905-4dff-a7c5-a1b40a440ee6.jpg)](https://torquecafe.com/porsche-boss-admits-our-business-model-no-longer-works/)

Porsche was still able to make an operating profit in 2025 of €90 million (A$146 million), though this was a reduction of 98 per cent compared to its previous turnover of €5.3 billion (A$8.7 billion).

Though the Volkswagen Group hasn’t detailed what it projects Porsche’s profits to fall by this year, its own profit margins are expected to drop to just one per cent, down from original projections of up to four per cent. 

Porsche is already planing to make [big changes to its workforce](https://torquecafe.com/porsche-to-swing-the-axe-on-its-workforce-again/), with approximately 8900 employees in Germany to be cut from the brand’s payroll in Germany by the end of 2035.