VW's Preferred Shares Under Pressure as Family Holding Pushes for Deeper Cuts While US Operations Get a Reset
Published on 08/10/2026 at 14:04 | Redaktion boerse-global.de
The power struggle over Volkswagen's cost-cutting program is intensifying on multiple fronts. Porsche SE, the holding company through which the Porsche and Piëch families control their stakes in the Wolfsburg-based automaker, is demanding a significantly faster pace of cost reductions and capacity cuts. Meanwhile, the company is simultaneously executing a management overhaul of its struggling US operations, where a new pickup truck project and a refreshed model lineup are meant to reverse recent setbacks.
A Widening Restructuring Gap
At the heart of the dispute is a savings plan that goes well beyond the program agreed upon at the end of 2024. That earlier agreement committed Volkswagen to cutting 50,000 jobs by 2030 and reducing capacity by 500,000 vehicles. But according to a presentation delivered to the supervisory board on July 9, as many as 50,000 additional positions could now be eliminated — bringing the potential total to 100,000 jobs worldwide. The closure of four German plants is also on the table: Emden, Zwickau, Hannover, and the Audi plant in Neckarsulm.
CEO Oliver Blume has justified the more aggressive approach by pointing to competitive pressure from China, US tariffs, and the fallout from the Middle East conflict. Works council chief Daniela Cavallo and IG Metall have already signaled their opposition to any plant closures.
The push from Porsche SE is partly explained by its own balance sheet. The holding company's adjusted net profit fell to €0.9 billion in the first half of 2026, down from €1.1 billion in the same period a year earlier. On a reported basis, Porsche SE posted a net loss of €2.2 billion, driven by €3 billion in write-downs on its VW stake and an additional €0.2 billion on Porsche AG. With the family holding's economic fortunes closely tied to Volkswagen's performance, the pressure to force a faster course correction in Wolfsburg has grown considerably.
US Operations Get a Fresh Start
The restructuring in Germany runs parallel to a shake-up across the Atlantic. Marco Schubert, currently head of sales at Audi, is taking over Volkswagen's US business, replacing Kjell Gruner, who is leaving the company. The management change comes at a difficult moment for the American operations. At the Chattanooga plant in Tennessee, Volkswagen halted production of the electric ID.4 earlier this year after US subsidy conditions for electric vehicles changed. A decision on whether the new pickup project will be pursued alone or with a partner such as Ford is expected in the coming weeks and months, according to a company source cited by Reuters.
Volkswagen is also betting on an existing model to keep the US plant busy: the company unveiled the new Atlas Cross Sport in Chattanooga, which will also be built at the site. The timing underscores that Volkswagen remains committed to its US factory despite the EV setback, even as the company's leadership undergoes a reshuffle.
The US overhaul is part of a broader restructuring effort. In early July, the executive board presented the supervisory board with a package of twelve initiatives and a "Target Picture 2030" plan. The model lineup is to be streamlined by up to 50 percent, with the number of possible equipment options reduced by up to 75 percent. The board has said it will only discuss potential plant closures and job cuts after the summer break, with no concrete decisions made so far.
Earnings Pressure Mounts
The cost-cutting drive is backed by weak recent results. In late July, Volkswagen reported second-quarter net profit of €1.54 billion, a decline of 32.9 percent from €2.29 billion in the same period a year earlier. Operating profit came in ten percent below market expectations, although free cash flow was better than anticipated. Audi added to the pressure when it cut its 2026 guidance on July 27, now expecting around €5 billion less in revenue and lower margins, weighed down primarily by constrained business in China and the US.
While Volkswagen navigates plant closures and workforce reductions, employers in the UK face their own restructuring headaches — and a hidden one is workplace safety compliance. When headcounts shrink and operations are consolidated, risk assessments often fall out of date, leaving companies exposed. A free toolkit with 41 ready-to-use templates and checklists helps you document hazards properly and stay on the right side of the law. Download the free Risk Assessment Toolkit
On the electrification front, the company has also made a personnel move: since August 1, Joost Kessels has been serving as Chief Development Officer for SEAT and CUPRA, tasked with strengthening the role of both brands in the electrification strategy.
Market Reaction and Analyst Caution
The confrontation between the major shareholder and management is visibly weighing on the share price. Volkswagen's preferred shares are currently trading at €75.52, down 0.87 percent on the day. The stock sits roughly 3 percent below its 50-day average of €77.87 — a sign that the short-term recovery of recent weeks is fading. From the December record high of €109.10, the shares are now almost 31 percent lower.
Analysts have responded cautiously to the second-quarter numbers. Berenberg cut its price target on July 27 from €113 to €100, while maintaining a "Buy" rating. Analyst Romain Gourvil cited solid free cash flow but pointed to ongoing challenges in China. Another bank had previously lowered its target from €99 to €90, also keeping a buy recommendation.
Erste Group Bank has trimmed its earnings estimate for Volkswagen for fiscal 2027 to $2.52 per share, down from $2.62, though that figure still remains above the market consensus of $1.85. The background includes a disappointing second quarter: Volkswagen reported earnings per share of $0.30 in late July, while analysts had expected $0.57 on average, with revenue of $93.81 billion.
Overall analyst ratings sit in "Moderate Buy" territory — a stance that offers little support for the stock given the unresolved dispute over plant closures and job cuts. The preferred shares closed Friday up 1.20 percent at €76.18, but the longer-term trend remains negative: the stock trades 17.23 percent below its 200-day average and is down 26.86 percent since the start of the year. The next quarterly results are due on October 29 and will show whether the announced US measures are already having an effect. Until Porsche SE, management, and labor representatives find common ground, uncertainty over the pace and scope of the savings program is likely to keep driving Volkswagen's share price.
