Volkswagen at 16-Year Low as Q1 Margins Crumble and China Sales Dive
29.06.2026 - 15:53:07 | boerse-global.de
Volkswagen’s preferred shares touched €72.54 on Monday, their weakest level since August 2010, after the automaker reported a first-quarter operating margin of just 3.3% — well below the full-year target of 4.0% to 5.5%. Revenue slipped 2% to €75.7 billion, while operating profit plunged 14.3% to €2.5 billion. Vehicle sales fell 7% to 2.0 million units, with Chinese deliveries tumbling 20% and North American sales dropping 9%.
The stock now sits barely above its year low of €72.12 and has lost nearly 32% since the start of 2026. The sell-off has not spared the Porsche Automobil Holding SE, which controls 53.3% of Volkswagen’s voting rights — that stock also slid to a multiyear low, last seen in June 2010, reflecting deep skepticism toward the entire Volkswagen complex.
Jefferies analyst Philippe Houchois responded to the deteriorating outlook by cutting his price target from €130 to €120, though he maintained a “buy” rating. He pointed to the painful restructuring underway and Volkswagen’s heavy reliance on Europe, but also noted that improved contract terms for the planned sale of the “Everllence” unit could strengthen the balance sheet and broaden strategic options.
Should investors sell immediately? Or is it worth buying Volkswagen?
Despite a net cash flow in the automotive division that swung to €2.0 billion from minus €0.8 billion a year earlier and net liquidity of €34.2 billion, the market remains unconvinced. The shares are trading 16.5% below their 50-day moving average and 23.5% below the 200-day line, with the relative strength index at 21.2 — deep in oversold territory, but no guarantee of a rebound when fundamental confidence is shaken.
Beyond the quarterly numbers, Volkswagen faces a thicket of external pressures. The European Union has already imposed retaliatory tariffs on Chinese electric vehicles, and additional trade measures could arrive by autumn 2026. At home, new tax rules for EV charging are adding administrative burdens for fleet operators, further dampening demand. The company is poring over its entire portfolio, cutting costs, and shoring up European supply chains to finance the expensive shift to electric mobility.
Management maintains its full-year margin guidance of 4.0% to 5.5%, but credibility depends on a tangible recovery in China and North America during the second quarter. A successful close of the Everllence deal, combined with a sharper focus on Europe, could provide a floor — but for now, the charts show a trend that has yet to find a bottom.
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