The Globe and Mail reports in its Saturday edition that Volkswagen on Friday flagged 10 billion euros ($16-billion) in impairments, mostly at struggling Porsche, deepening a crisis at the worlds second-largest automaker that has already triggered the group's biggest-ever restructuring. A Reuters dispatch to The Globe says the news raises questions over Porsche, which has been hardest hit by U.S. tariffs and collapsing demand for foreign luxury brands in China, creating a perfect storm for the division that posted a profit margin of just 1.1 per cent last year. The impairments, flanked by a profit warning, come two weeks after the company agreed to a major transformation deal with its shareholders, including another 50,000 job cuts, a simplification of its structure and possible plant closings. Having heavily relied on China and the United States, Volkswagen has been squeezed by drastic changes in both markets, including painful levies on U.S. imports as well as a decline in the Chinese market, where it was the biggest player until 2024. Volkswagen, which also includes the Audi, Skoda and Seat brands, now expects a profit margin of 1 per cent at the most in 2026, having previously guided for 4 per cent to 5.5 per cent.