Volkswagen and Porsche Shares Keep Falling After Profit Warning

Volkswagen and Porsche shares fell further, continuing a slide that began with Porsche's profit warning. The decline carried into a second session, suggesting investors are not satisfied that the warning captures the full scope of the problem at the sports-car maker and its parent. Porsche's chief executive sent staff a memo assuring them no further job cuts are planned, an attempt to calm internal anxiety after the warning. That the company felt it necessary to address job security directly points to how disruptive the profit warning has been inside the business, not just for outside shareholders. What remains unclear is whether the profit warning reflects a one-off hit or a deeper shift in demand, particularly in China, where premium carmakers have struggled. Investors are watching for Volkswagen's next formal guidance update to see if the warning gets revised further.