BERLIN, Germany: Volkswagen recorded its steepest quarterly loss in more than a decade as a writedown on its Porsche stake and weakness in China intensified pressure on the automaker to push ahead with sweeping restructuring.

The world's second-largest carmaker reported an operating loss of €5.9 billion ($6.6 billion) for the third quarter, with management renewing calls for radical cost reductions as a dispute with German unions looms.

Driven by €8 billion in one-off charges, the loss was Volkswagen's largest quarterly deficit since the fourth quarter of 2015, when the group booked substantial costs linked to the "Dieselgate" emissions-cheating scandal.

Volkswagen is struggling with shrinking margins as Chinese electric vehicle manufacturers gain market share in Europe after ending the group's dominance in China, adding to the pressures facing European automakers.

"We must fundamentally reshape our business model," finance chief Arno Antlitz said while presenting the results.

Volkswagen's restructuring plan, agreed by the board in September, involves 100,000 job cuts across the group and the closure of up to four plants in Germany. Antlitz said it needed to be implemented quickly.

"Our financial performance leaves no room for delay."

Volkswagen shares have lost more than three-quarters of their value since a 2021 peak, although investors largely shrugged off Thursday's loss after the company earlier this month flagged €10 billion in one-off costs and cut its profit margin guidance.

The shares initially fell before rising 1.7% by 1100 GMT.

"The figures don't really shock anyone anymore," said a Frankfurt-based equity trader.

Volkswagen's difficulties mirror those affecting much of Europe's auto industry. BMW and Mercedes have also cut their annual targets because of weakness in China.

"Operating results were in line with low expectations. VW is in a transitional year," said Ingo Speich of Deka Investment, a top 10 investor in Volkswagen.

The decline of Volkswagen's once highly profitable China business has been a major driver of its restructuring, with the group also reducing jobs and capacity in the country.

Chinese consumers have increasingly moved towards domestic brands offering advanced technology at lower prices, prompting Porsche to scale back in the market. Volkswagen, meanwhile, is increasing exports from China to offset weaker local demand.

Its Anhui venture is currently loss-making, with management aiming to bring the operation to at least break-even by 2030, Antlitz said.

Weak domestic demand in China has also pushed local manufacturers to seek growth in Europe, forcing Volkswagen to accelerate the introduction of lower-cost electric vehicles to defend its market share.

That effort is putting further pressure on margins because electric vehicles are more expensive to produce than combustion-engine vehicles.

Moritz Kronenberger of Union Investment said further writedowns could not be ruled out.

"If business in China and the competitive landscape vis-à-vis Chinese competitors in other markets do not improve soon, there will continue to be significant potential for writedowns in the future," Kronenberger said.