Volkswagen’s Boardroom Battle: Could an Extraordinary Meeting Decide the Fate of 100,000 Jobs?

Volkswagen is entering a decisive week that could reshape the German industrial giant for a generation. On July 9, the supervisory board is set to debate a sweeping cost-cutting plan that includes plant closures and the elimination of more than 100,000 jobs by 2035. If the board fails to approve the package, management has signaled it may bypass the oversight body altogether — and take the restructuring directly to shareholders through an extraordinary general meeting.

The threat is as much a governance tactic as a procedural option. Porsche Automobil Holding SE commands 53.3% of voting rights, while the state of Lower Saxony holds 20.0%. Any extraordinary meeting would effectively hand the decision to these two dominant blocs rather than the broader shareholder base. Still, the move underscores the urgency inside Volkswagen’s executive suite as the company confronts a crisis that has pushed its stock to the brink of a 52-week low.

The Scale of the Surgery

The restructuring blueprint is the most radical in Volkswagen’s history. Beyond the 100,000 job cuts, several German factories face potential closure, and the group is targeting a 20% reduction in overhead costs by 2028 — with roughly €1 billion in savings expected from administrative expenses alone. Global production capacity is to be trimmed to nine million units. The plan also entails terminating the cooperation with Bosch on automated driving, a partnership once viewed as central to Volkswagen’s technology roadmap.

These moves come against a backdrop of deteriorating financials. In the first quarter of 2026, earnings per share fell to €2.57 from €3.65 a year earlier. Revenue slipped 2.5% to €75.7 billion, while net profit plunged 30%. The operating margin languished at just 3.3%, far below the 4% to 5.5% range the company still hopes to achieve for the full year. Adding to the strain, Volkswagen expects annual CO2 penalty payments of €400 million to €500 million through 2027 — a cost the management has chosen to absorb rather than offer aggressive discounts on early-generation electric vehicles.

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Stock Under Pressure, Technical Signals Flash Extreme

The market has already priced in the uncertainty. Volkswagen shares were trading at €71.08, a mere 0.10% above the 52-week trough of €70.98. The year-to-date decline stands at 33%. The relative strength index has sunk to 19.8, a level that indicates extreme oversold conditions but offers no guarantee of a reversal. The stock’s distance from its 200-day moving average has widened to nearly 25%, a stark measure of how far the share price has diverged from its longer-term trend.

Despite the bleak picture, analysts remain cautiously optimistic, with a consensus price target of €110.45 — but only if the restructuring gains traction. The secondary article notes a similar RSI reading of 20.3 and a slightly higher share price of €71.56, both confirming the same technical story.

A Parallel Strategy: Partnering with a Former Rival

While Volkswagen cuts costs at home, it is deepening ties with a Chinese challenger. The Wolfsburg-based group has selected XPeng as a strategic partner for intelligent driving systems in China, a market that has become a primary drag on earnings. The collaboration highlights a remarkable role reversal: XPeng, once dismissed as a distant competitor, is now helping Volkswagen navigate the world’s largest auto market. The Chinese company recently unveiled its X-Mind AI system and is pushing ahead with robotaxi plans, while Volkswagen scales back its own autonomous driving ambitions.

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The July 9 Verdict and the Path Ahead

The outcome of the supervisory board meeting remains uncertain. The works council and the state of Lower Saxony — which holds a veto over major strategic decisions — have yet to signal support for the full package. If the board deadlocks, calling an extraordinary general meeting would be a high-stakes escalation. But given the voting control exercised by Porsche SE and Lower Saxony, it would hardly represent a democratic dispersion of power.

For now, Volkswagen has declined to comment on the Correctiv report that first detailed the contingency plan. The company stressed that board sessions are confidential, and the ordinary general meeting on June 18 – which approved a dividend of €5.20 per ordinary share and discharged management – proceeded as scheduled. The next few days will determine whether the board embraces the radical cure or forces a showdown that lands in the shareholders’ court. Investors, meanwhile, are left to weigh a stock already battered by doubt against a transformation plan that could either restore competitiveness or trigger a prolonged industrial conflict.

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