Accusation of Betrayal Deepens Volkswagen’s Crisis as Shares Near Breaking Point
Published on 07/12/2026 at 13:26 | Redaktion boerse-global.de
Volkswagen’s already-fractured labor relations suffered a further blow over the weekend after the works council accused chief executive Oliver Blume of a grave breach of trust. Employee representatives claimed that management had long been aware of specific plans for plant closures and job cuts in Germany but deliberately withheld those details from the workforce. A spokesman for the labor side described the episode as “a loss of trust that cannot be surpassed,” and pointed to an expired ultimatum that had demanded the board clarify rumors of up to 100,000 job reductions by Friday evening. No such clarity was provided.
The escalation follows a dramatic defeat for Blume within the supervisory board. At a meeting last Thursday, only seven of the 19 members present voted in favor of his austerity program, the “Zukunftsplan 2030.” All worker representatives voted against it, effectively halting the restructuring blueprint. With the plan in limbo, Blume has begun searching for what he calls “intelligent alternatives,” though he insists that further cost reductions are necessary to safeguard Germany as an industrial location. He notes that factory costs at VW’s domestic sites have already been cut by an average of 20 percent.
The operational backdrop remains grim. On Friday, Volkswagen reported a 8.6 percent decline in worldwide deliveries for the second quarter of 2026, to roughly 2.08 million vehicles. The company’s core market in China was hit especially hard, with sales collapsing 36.6 percent. The electric-vehicle business is also struggling: first-half BEV sales in the United States tumbled 68.8 percent, a drop Volkswagen attributes in large part to the expiry of government subsidy programs.
Should investors sell immediately? Or is it worth buying Volkswagen?
All eyes will now turn to Monday morning, when VW holds its H1 pre-close call between 9 a.m. and 10 a.m. The market expects management to provide details on margins and cash flow, but the main focus will be on the company’s strategy for China and its broader cost structure. Analysts are keen to understand how VW plans to regain competitiveness against Chinese EV makers. Unresolved questions around potential EU retaliatory measures in the ongoing tariff dispute with Beijing are adding another layer of uncertainty for the automaker’s largest single market.
The financial markets are already pricing in the turmoil. Volkswagen’s preferred shares closed Friday at €71.06, down 1.31 percent on the day. The stock has shed 5.25 percent over the past week, 17.85 percent over the past month, and a staggering 33.03 percent since the start of the year. That puts it just 2.69 percent above the 52-week low of €69.20 set in early July and a full 35 percent below the December 2025 peak of €109.10. The shares now trade well below their 200-day moving average of €93.78. The relative strength index stands at 30.2 — a level that normally signals oversold conditions. Yet with the 30-day annualized volatility running at 32.21 percent, chart watchers warn that a break below €69.20 could trigger further selling, potentially dragging the stock toward €60.
Monday’s pre-close call offers management a chance to present a credible path forward. If the session fails to deliver a convincing story on China and cost reduction, the pressure on the shares will intensify. The next major checkpoint comes on July 24, when Volkswagen publishes its full half-year financial report. Until then, every statement from either the labor side or the board will be scrutinized for signs of a breakthrough — or a further loss of control.
Ad
Volkswagen Stock: New Analysis - 12 July
Fresh Volkswagen information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
