Automakers and consumer businesses face distinct operational and financial headwinds. Volkswagen cut its 2026 operating-margin outlook after massive special charges, while homebuilder Lennar reduced its full-year delivery targets due to high interest rates. Additionally, Singapore baby-care brand Tollyjoy is closing after 55 years, and Jersey Mike's saw net income fall despite higher revenue.
01Earnings
Volkswagen Cuts Outlook Following $11.5 Billion One-Off Charge
Writing down Porsche's valuation while facing compressed Chinese electric vehicle margins strips Volkswagen of the high-margin cash engines historically relied on to fund structural labor restructuring.
Volkswagen slashed its 2026 operating- forecast to no more than 1 percent, down from a previous range of 4 percent to 5.5 percent, after flagging approximately 10 billion euros in special charges. The profit warning wiped 5.6 percent off Volkswagen shares on Friday, dragging down luxury sports-car maker Porsche and top shareholder Porsche SE. The writedown includes a 6 billion euro non-cash impairment of goodwill tied to Porsche, alongside 2 billion euros in expenses for expanded early retirement programs, Chinese impairments, and the planned sale of the Osnabrück manufacturing subsidiary. Chief financial officer Arno Antlitz pointed to a 20 percent contraction in the Chinese car market and lower profitability on battery-electric vehicles as core drivers of the margin compression. The restructuring program will double planned global job cuts to 100,000 workers as the automaker grapples with weaker pricing and intensifying competition from domestic Chinese brands. Volkswagen shares fell nearly 30 percent over the course of the year, culminating in its removal from the Euro Stoxx 50 .
Apple Implements Software Feature to Bypass iPhone Battery Shipping Restrictions
Using firmware to alter hardware power ratings shifts compliance costs from physical supply chain redesigns to software deployment, giving single-cell architectures an unexpected margin advantage over dual-cell rivals.
theverge.com reports that Apple has developed a firmware solution to bypass international shipping restrictions on the iPhone 18 Pro Max. The software keeps battery capacity below the 20Wh single-cell limit during transit and automatically removes the restriction upon first boot. Users restore full capacity of around 21.75Wh for US eSIM-only models and 21.06Wh for European models with a physical SIM slot after activation. A Prepare to Ship setting caps charging at 80 percent for 14 days if the device requires return for repair or resale. Android manufacturers typically rely on costlier dual-cell batteries outside Asia to navigate the same regulations.
Nissan Considers Increasing US Production as New Rogue Hybrid Launches
Using imported series-hybrid powertrains to seed American demand before converting domestic plants to multi-shift production trades near-term import exposure for long-term local capacity utilization.
cnbc.com reports that Nissan is weighing a ramp-up in U.S. manufacturing capacity to support the upcoming launch of the 2027 Rogue crossover, which will introduce the brand's first e-Power hybrid system to the American market. Christian Meunier, chairman of Nissan Americas, stated that the company is currently maximizing output at its Smyrna, Tennessee assembly plant and plans to introduce a third production shift across its facilities once domestic hybrid manufacturing begins next year. The operational expansion aims to lift annual U.S. production to roughly 1 million units, up from nearly 487,000 in 2025. Nissan initially plans to import the hybrid vehicles from Japan to accelerate time to market, supporting an ongoing global turnaround strategy that targets 1 million brand sales in the U.S. by the 2030 financial year. The series hybrid system uses an internal combustion engine strictly as a generator for electric motors without plugging in, positioning the new Rogue against established competitors like the Toyota RAV4 and Honda CR-V.
Volvo Cars Names Klaus Zellmer as CEO to Lead Turnaround
Installing a mass-market European turn-around specialist grounds Geely's luxury brand in legacy cost-cutting rather than standalone electrification, prioritizing near-term margin targets over pure EV transition goals.
Euronews.com reports that Volvo Cars named Škoda chief Klaus Zellmer as its next chief executive officer, tasking him with leading a turnaround at the Swedish car manufacturer. Zellmer will assume the role no later than October 1, 2027, with current CEO Håkan Samuelsson remaining until then to manage the transition. Samuelsson returned to the post in April 2025 to stabilize operations affected by American , launching an 18 billion Swedish krona cost and cash plan that included 3,000 job cuts and the abandonment of a 2030 all-electric target. Volvo is now targeting an above 8%, compared with 3.5% in 2025, relying on a 13-model electrified lineup and deeper integration with majority owner Geely.
Singapore Baby-Care Brand Tollyjoy to Shut Down After 55 Years
Second-generation family-owned consumer brands fail when legacy retail distribution models can no longer absorb rising operating costs without the scale of multinational conglomerates.
channelnewsasia.com reports that Singapore baby-care brand Tollyjoy is winding down after 55 years of operation. Founded in 1971, the family business manufactured essentials ranging from feeding bottles to cleaning products and pillows under the leadership of second-generation chief executive Tan Wee Keng. The company announced the closure in a Facebook post dated Sep 15, though it did not specify an exact date for the final removal of its products from retail shelves. Customers can continue purchasing remaining inventory from retail partners at special farewell prices while stocks last. A 2018 article published by Singapore Management University indicated that the firm employed about 200 people and generated S$16 million in annual in 2016.
Jersey Mike's Reports First Earnings Since Public Debut
Public market scrutiny tests whether sub-shop unit expansion and traffic growth can offset post-IPO debt loads and rising advertising costs while scaling toward long-term store targets.
Jersey Mike's Subs Inc. reported first-quarter of $208 million in its inaugural release as a public company, marking a 10 percent increase from a year earlier. fell to $37 million from $59 million over the same period, pressured by non-routine expenses, advertising-fund timing, and higher interest costs following its July initial public offering. Same-store sales accelerated to 2.3 percent growth, up from 1.7 percent in the prior quarter, driven primarily by transaction gains despite broader restaurant industry traffic headwinds. The sandwich chain added 83 stores during the quarter to reach 3,378 total locations, and management outlined a domestic development pipeline exceeding 1,600 units. Chief Executive Officer Charlie Morrison targeted an average unit volume of $2 million, up from $1.4 million currently, while eyeing a long-term global footprint of 15,000 stores.
Lennar Cuts Home Delivery Target Amid High Mortgage Rates
Relying on direct price incentives and rate buydowns to sustain order volumes erodes homebuilder gross margins when elevated borrowing costs persistently compress underlying buyer purchasing power.
Lennar lowered its full-year home delivery target to between 80,000 and 81,000 homes, cutting a previous forecast of 82,000 to 83,000 units after elevated and affordability pressures weighed on demand. The revised outlook missed the 82,300 deliveries analysts polled by FactSet had anticipated. For the fiscal third quarter, the homebuilder reported adjusted of $1.23 on of $8.05 billion, falling short of consensus estimates for $1.29 in per-share and $8.32 billion in revenue. Shares fell to a new 52-week low of $76.07 following the report. Management pointed to 30-year fixed mortgage rates hovering around 7 percent as a primary headwind eroding buyer purchasing power. To stimulate sales, the company offered incentives averaging 12 percent of the sales price during the quarter, down from 12.9 percent in the second quarter as it scaled back rate buydowns. Looking to the final quarter, Lennar expects between 22,000 and 23,000 home deliveries, gross margins ranging from 15.5 percent to 16 percent, and earnings per share between $1.30 and $1.65.
Lennar Full-Year Delivery Guidance (count)
Lennar lowered its full-year delivery ceiling by 2,000 homes.
Mounting corporate charges, interest costs, and rate pressures are eroding bottom lines across retail, housing, and automotive sectors. Whether upcoming product launches like Nissan's hybrid can offset broader margin compression and waning consumer demand remains unresolved.
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