Volkswagen's €6 billion writedown on its 75% Porsche stake has intensified pressure on the carmaker's restructuring effort, adding to approximately €10 billion in previously flagged one-off charges and a reduced 2026 operating-margin outlook of no more than 1%. The impairment, following a €2.7 billion charge a year earlier, reflects weaker financial expectations for Porsche as the luxury marque loses ground in China, confronts U.S. tariffs and absorbs costly missteps in its electric-vehicle transition. Porsche's goodwill at Volkswagen has fallen by more than a third to about €10 billion, from €18.8 billion in 2022, when the company listed the sports-car maker and targeted 20% margins. Porsche CEO Michael Leiters maintained a medium-term margin target of 10% to 15%, but analysts say sales volumes will be crucial to cash generation and Volkswagen's wider recovery. Porsche's margins have fallen below those of the wider group and Skoda, while investors and analysts have questioned whether Volkswagen's restructuring can meet its 9% end-of-decade operating-margin target. The developments come after Stoxx removed Volkswagen from the Euro Stoxx 50 following a decline in its free-float market value, requiring index-tracking funds to sell the stock. Volkswagen shares have fallen almost 30% this year, while the group pursues its largest restructuring, involving 100,000 job reductions and a halved model range. Third-quarter results are due on 29 October.