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(Sharecast News) - Car maker Volkswagen on Thursday reported a 1.3bn operating loss in the third quarter driven by extra charges at its Porsche unit.
The extra 4.7bn in costs came after Porsche cut profit targets and said it would carry on selling petrol vehicles for longer than previously planned. These came on top of an expected 5bn hit from US tariffs.
"Those effects will continue to persist - and that is why we must rigorously implement the performance programs in place, push forward efficiency measures and develop new approaches," said chief financial officer Arno Antlitz.
Volkswagen's operating loss in the third quarter compared with a 2.8bn operating profit a year earlier but not as bad as the 1.7bn estimated by analysts.
The company also said its profit targets were at risk without sufficient computer chips, amid an expected shortage of semiconductors from China could hit carmakers across Europe.
A political row over Chinese-owned producer Nexperia has seen chip supplies dwindling with European car makers suggesting they may have to close production lines.
China banned exports from the Nexperia after the Dutch government took over the Netherlands'-based company at the end of September and suspended its Chinese chief executive after the US raised security concerns.
Reporting by Frank Prenesti for Sharecast.com
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