Volkswagen’s Existential Crisis Deepens as Shares Hit 15-Year Low and Porsche Settlement Offers Little Relief
23.06.2026 - 04:12:10 | boerse-global.de
Volkswagen’s preferred shares touched their lowest level in 15 years on Monday, plunging to €77.88 before closing at €79.80. The sell-off follows a rare internal survey in which a majority of the board deemed the company’s very existence under threat. That bleak assessment, combined with mounting operational headwinds, has erased nearly a quarter of the stock’s value since January.
The scale of the overhaul now under way is staggering. By 2030, Volkswagen will cut around 50,000 jobs worldwide and slash production capacity by one million vehicles. Plants in Emden, Zwickau and Hannover face an uncertain future as the group exports China-built models to markets such as Uzbekistan for the first time, aiming for 250,000 cars a year. In China itself, the sales target for 2030 has been lowered to 3.2 million units after profits there tumbled 44 per cent. The market capitalisation has shrunk to roughly €43 billion, putting Volkswagen on a par with Mercedes-Benz.
Against this grim operational picture, a legal milestone passed almost unnoticed. Porsche AG’s virtual annual general meeting on Tuesday is expected to formally approve a €278 million settlement covering diesel-related claims. Porsche, Volkswagen, Audi and several managers’ liability insurers are party to the deal. Audi’s shareholders backed it in March; Volkswagen’s own investors gave the green light in mid-June with an overwhelming majority. The vote merely creates a new legal foundation for money that has already been paid out, after the Federal Court of Justice invalidated earlier 2021 settlements. No fresh cash will flow into the operating business.
Should investors sell immediately? Or is it worth buying Volkswagen?
A separate €50 million reserve account still holds potential residual funds. By the end of March, only €15 million of that had been used. Any leftover amount will flow back to Volkswagen after 2027, which will then distribute it to Audi and Porsche – a pure administrative mechanism that leaves margins and cash flow untouched.
Shareholders have also felt the pain directly: the dividend was cut by 17 per cent. The relative strength index has dropped to 27.8, firmly into oversold territory. Yet market observers caution against reading that as a buy signal, given the fundamental headwinds. The supervisory board is set to discuss further cost reductions on 9 July 2026, while Porsche’s meeting on Tuesday is expected to draw fierce criticism over the Chinese sales slump. If the stock fails to hold support near its recent low, further downside appears likely.
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