Volkswagen Shares Sink After Workers Block Cost Cuts and China Sales Tumble 37%
Published on 07/11/2026 at 14:45 | Redaktion boerse-global.de
Volkswagen investors ended the week bruised after a one-two punch that left the stock near its lowest level in a year. On Thursday, worker representatives on the supervisory board’s presidium voted 12?7 against CEO Oliver Blume’s sweeping restructuring package, and the following day the carmaker reported second?quarter sales that underscored just how badly the Chinese market has deteriorated.
The failure of Blume’s “Target 2030” plan in the boardroom came as a surprise to many. The proposal would have slashed global production capacity from 12 million to 9 million vehicles annually and put up to 100,000 jobs at risk worldwide. Four German plants — Hannover, Zwickau, Emden and Neckarsulm — were earmarked for possible closure. IG Metall had already mobilized workers for protests, and the union’s strong opposition clearly swayed the employee?side board members.
The rejection left Blume with little time to regroup. On Friday, the company disclosed that group deliveries in the second quarter fell 8.6% from a year earlier to 2.08 million vehicles. The heaviest blow came from China, where sales crashed 36.6% to just 424,300 units — a market that once drove Volkswagen’s growth but is now dominated by aggressive domestic rivals and pricing pressure.
The pain was felt across the group’s premium brands. Volkswagen’s core brand saw second?quarter deliveries drop 14%, Audi slipped 8% and Porsche tumbled 18%. Over the first half as a whole, Porsche’s global sales slid 16% to 122,306 vehicles, while Audi’s first?half figure was 7% lower. Only West Europe, with a 1.8% gain, and North America, up 7.7%, offered any relief.
Should investors sell immediately? Or is it worth buying Volkswagen?
Analysts remain divided on the outlook. Jefferies reiterated a “buy” rating with a €120 price target, but analyst Philippe Houchois argued that Blume’s restructuring blueprint lacked fresh substance, noting that concrete progress on plant closures, the five?year investment plan, or details of the 100,000?job reduction had yet to emerge. JPMorgan struck a more cautious tone, keeping a “neutral” stance; analyst Jose Asumendi expects further European capacity cuts and a sharper focus on the most profitable segments.
The market’s verdict on the twin setbacks was swift. Volkswagen’s preferred shares (VOW3) closed at €71.06 on Friday, down 1.31% on the day. The stock has now lost 17.85% in the past month and 33.03% since the start of the year. Market capitalization stands at €34.72 billion — a far cry from the €109.10 peak touched in the past 52 weeks.
Technical indicators reinforce the bearish picture. The shares trade just 2.69% above the 52?week low of €69.20 hit on July 1, and the relative strength index of 30.2 flags a market approaching oversold territory. The stock is also 24% below its 200?day moving average of €93.78, underscoring the persistent downward trend.
Volkswagen at a turning point? This analysis reveals what investors need to know now.
The coming weeks will hinge on two questions: can Blume revive his austerity plan after the boardroom defeat, and will Chinese demand stabilize? Until either question yields a clear answer, Volkswagen shares look likely to remain trapped between deteriorating fundamentals and the hope of a strategic breakthrough.
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