RBC Cuts Volkswagen Q3 Forecasts on China Delivery Slump, Restructuring Costs

07:13 AM EDT, 10/15/2026 (MT Newswires) -- RBC Capital Markets lowered its third-quarter estimates for Volkswagen (VOW.F, VOW3.F), noting as-expected delivery declines in China and restructuring expenses after the research firm attended the German automaker's investor update event in Paris. "We lower our Q3 EBIT estimate to (EUR5.8B), reflecting the previously-announced ~EUR6B non-cash Porsche goodwill impairment and ~EUR2B in incremental restructuring charges comprising expanded early retirement schemes and costs associated with the planned sale of VW Osnabrück, as well as non-cash asset impairments on China JV entities," according to a Wednesday note. The research firm also trimmed its full-year 2026 EBIT assumption to 3.2 billion euros, matching Volkswagen's lowered margin guidance of up to 1% EBIT margin amid an expected 1.9 billion euros in Europe-to-China export headwinds. While Volkswagen's China deliveries fell 38.5% year over year to 406,000 units, RBC said the company's performance in the region was "only slightly worse" than its European peers. "A portion of the incremental weakness in China deliveries reflects transition dynamics ahead of VW's model offensive, with the ID. Aura T6 only recently entering the ramp phase," analysts added. Ahead of Volkswagen's nine-month report publication on Oct. 29, RBC lowered the outperform-rated stock's price target to 115 euros from 120 euros.