Volkswagen Faces Lower RBC Q3 Estimates, China Deliveries Plunge 38.5%

RBC Capital Markets lowered its estimates for Volkswagen AG’s third quarter, citing continued weakness in China and anticipated restructuring expenses.

Recent data showed Volkswagen’s global deliveries fell 14.3% in the third quarter. Deliveries in China, the automaker’s largest market, plunged 38.5%.

Analysts describe China’s challenges as an industry-wide issue. Still, weaker sales and restructuring costs have prompted them to reassess Volkswagen’s near-term profitability. Growing competition adds to the headwinds in China.