VW's Preferred Shares Languish Near Lows as Brussels Clears €7.4bn Engine-Unit Sale
Published on 08/16/2026 at 14:11 | Redaktion boerse-global.de
The European Commission's antitrust clearance for Volkswagen's disposal of its heavy-engine subsidiary arrived on Friday like a rare piece of good news in a quarter otherwise defined by deteriorating numbers. The green light from Brussels removes the final regulatory hurdle for Bain Capital to acquire a 51 percent stake in Everllence, a deal that will channel €7.4 billion into the German automaker's depleted coffers.
Yet for holders of VW's preferred shares, the approval barely registered. The stock closed Friday at €73.88, up 0.9 percent on the day — a modest bounce that does little to mask a brutal stretch for the equity. The shares have shed roughly 29 percent since the start of the year and sit just 6.8 percent above their 52-week low of €69.20, touched in early July. By contrast, they trade more than 30 percent below December's 52-week high of €109.10.
A Second-Quarter Slide That Sharpens the Stakes
The market's caution is hardly unfounded. Volkswagen reported a 32.9 percent drop in group net profit for the second quarter, landing at €1.54 billion, and quietly abandoned its previous guidance for revenue growth — an admission that the operational recovery will take longer than management had hoped.
That weak print has intensified pressure from the company's own controlling shareholders. Porsche Automobil Holding SE, the holding vehicle for the Porsche and Piëch families, took writedowns of €3 billion on its Volkswagen stake plus a further €200 million on its Porsche position. The scale of those impairments prompted the holding company to publicly demand a faster pace of restructuring, according to Reuters.
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The families nonetheless voiced support for management's sweeping overhaul plans on Friday. Those plans, as reported, could affect tens of thousands of additional jobs on top of the previously disclosed reduction of up to 100,000 positions across the group's ecosystem. Volkswagen is also expected to trim production capacity and significantly streamline its model lineup.
Everllence: A Core Divestment With Strings Attached
The Everllence transaction, first announced in late June, fits squarely within chief executive Oliver Blume's strategy of concentrating on the core automotive business. The Augsburg-based unit — known as MAN Energy Solutions until 2025 — employs roughly 16,000 people and generates sales of about €4.9 billion. It ranks among the world's leading producers of large engines and decarbonization solutions.
Volkswagen has committed to keeping the company's five German sites operational at least until 2030, even under the new ownership structure. The EU Commission, in its approval notice, said it found no competition concerns with the deal.
Political Heat and a Second Capital Raise
The Brussels decision does nothing to ease the political pressure mounting on Wolfsburg. Lower Saxony's state premier Olaf Lies, who met with mayors from VW's German plant towns, demanded clarity and perspective from management, saying the uncertainty "must finally end."
Blume is expected to unveil another cost-cutting package before year-end, potentially involving the closure of four plants and the elimination of up to 50,000 positions — on top of measures already agreed in 2024. By 2030, VW aims to cut roughly 50,000 jobs in Germany, with 35,000 of those coming from the core Volkswagen brand.
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The Everllence sale is not the only transaction in the pipeline. Volkswagen also plans to reduce its stake in truck subsidiary Traton from the current 87.5 percent to 75 percent. Bloomberg calculations value the existing holding at €16.6 billion. The move underscores Blume's austerity drive, with the CEO estimating that group costs run about 20 percent above competitor levels.
Analyst Support Amid the Gloom
Not everyone has abandoned the stock. RBC reaffirmed its buy rating on Volkswagen on August 14, a sign that at least part of the analyst community still believes in the long-term restructuring potential despite the weak financials.
For now, though, the prevailing mood is one of caution. The combination of falling profits, an accelerated savings program, and the looming question of how concretely VW executes its announced plant closures in the coming months will determine whether the cash inflows from Everllence and a potential Traton selldown can restore investor confidence. The preferred shares, trading closer to their low than their high, suggest the market is reserving judgment.
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