BERLIN (Reuters) -Volkswagen, Europe's largest carmaker, said on Friday it will take a 5.1 billion euro ($6 billion) hit due to a far-reaching product overhaul at sportscar division Porsche AG.

The move comes after Porsche AG, which is 75.4%-owned by Volkswagen, said it would significantly tweak its product strategy to reflect a slower-than-expected electric vehicle market.

Both Volkswagen and Porsche cut their profit margin targets for the current year.

Porsche SE, Volkswagen's biggest shareholder that also owns a 12.1% stake in Porsche AG, also cut its outlook for profit after tax.

($1 = 0.8516 euros)

(Reporting by Thomas Seythal and Christoph Steitz)