Volkswagen AG preferred shares strategy focus, stock under long term scrutiny

By Stefan Krueger, Long-Term & Business Model desk. Reviewed prior to publication on 2026-06-27, 14:14.

Volkswagen AG (Vz.) (DE0007664039) remains a key German auto stock as investors focus on the groups long term electrification and software strategy. The preferred shares trade on Xetra alongside peers BMW and Mercedes-Benz, keeping Volkswagen in the global spotlight according to recent market commentary.

Electrification roadmap and strategic ambitions

Volkswagen AGs long term strategy centers on a shift from traditional combustion engines towards battery electric vehicles, with the group planning dozens of new EV launches across its brands over the coming years as outlined in prior investor presentations. The company has repeatedly emphasized its ambition to be a leading global EV maker, positioning models from the Volkswagen, Audi, Skoda and Seat brands to compete with established electric players such as Tesla and BYD.

Strategically, Volkswagen is pushing modular platforms like the MEB architecture to underpin multiple EV models, which is designed to reduce complexity and lower production costs compared with building separate platforms for each vehicle line. Management has also highlighted plans to expand its battery supply chain, including investments in cell production and strategic partnerships, in order to secure long term access to critical components and manage cost volatility in raw materials such as lithium and nickel.

Software, platforms and long term profitability goals

Beyond hardware, Volkswagen is investing heavily in software and digital services, aiming to transform the car into a connected platform that can support over-the-air updates and new revenue streams from digital features. The group has described software as a core pillar of its future business model during previous capital markets days, acknowledging that robust software capabilities are increasingly crucial to customer experience and long term brand loyalty.

To support these ambitions, Volkswagen has set medium and long term profitability targets that factor in the heavy upfront investment required for electrification and digital transformation. Management has spoken of balancing capital allocation between maintaining competitiveness in combustion vehicles, particularly in markets where EV adoption is slower, while still moving decisively towards zero emission mobility, a strategy comparable to approaches taken by other major manufacturers like BMW and Mercedes-Benz.

The product behind the Volkswagen stock

Volkswagen AG generates its cash flows by producing and selling vehicles across multiple segments, including compact cars, SUVs and commercial vehicles under brands such as Volkswagen, Audi, Skoda and Porsche. The core business is supported by financial services, mobility offerings and increasingly by electrified models, though specific product emphasis can vary across global markets.

The listing and current trading venue

Volkswagen AGs preferred shares are listed on Xetra in Frankfurt and form part of major German indices, providing international investors with access to the companys long term strategy via a liquid trading venue.

This article was produced with AI assistance and editorially reviewed. Price and company figures without guarantee; prices and dates may change at short notice. No investment advice, no buy or sell recommendation. Stock-market transactions carry risks up to and including total loss.