VW Stock Sheds Nearly 30% in 2025 as Tariff Doubling Proposal and Works Meetings Expose Depth of Crisis
Published on 07/18/2026 at 08:03 | Redaktion boerse-global.de
Volkswagen’s preferred shares closed last Friday at €73.12, leaving the stock down nearly a third since the start of the year — a fall of 29.79% that underscores just how far the German automaker’s troubles have spread. The shares now trade roughly 33% below the 52-week high of €109.10 set in mid-December 2025, and sit only 5.72% above the 52-week trough of €69.20. Over the past 30 days alone, the equity has slumped 15.56%.
The relentless selling pressure reflects a deepening internal struggle over the company’s future. Chief executive Oliver Blume has laid out a sweeping plan to shrink the carmaker and push its operating margin from around 3% today to between 8% and 10%. The price tag for that transformation includes up to 100,000 job cuts — a figure that goes well beyond the 50,000 positions already earmarked for elimination by 2030. Volkswagen currently employs 284,000 people in Germany and 622,900 worldwide.
Tensions between the board and the workforce came to a head in July when the supervisory board discussed additional cost-saving measures. Blume warned that without a change in labour costs, another 50,000 jobs could theoretically be at risk globally on top of the previously announced reductions. He also confirmed that the plants in Emden, Hanover, Zwickau and Neckarsulm face no competitive utilisation rates in the 2030s.
The works council responded with an unusual move: it summoned the entire Vorstand to a series of nine works meetings across all major German sites at the end of August. Blume has agreed to appear in person at three of the most vulnerable locations — Wolfsburg on 25 August, Emden and Zwickau on 26 August, and then in Hanover on 31 August for a closing session. Other venues include Braunschweig, Salzgitter, Dresden, Chemnitz and Kassel-Baunatal. The council, in a special edition of its newspaper Mitbestimmen, accused management of supplying only “superficial information” and failing to make sustainable strategic decisions.
Should investors sell immediately? Or is it worth buying Volkswagen?
Now a political proposal has thrown another variable into the mix. Saxony’s economy minister, Dirk Panter of the SPD, is calling for a doubling of EU import tariffs on Chinese electric vehicles — duties that have ranged between 7.8% and 35.3% depending on the manufacturer since 2024. Panter’s goal is to make a joint venture at the threatened Zwickau plant attractive enough for a Chinese partner. “A joint venture in Saxony could avoid European tariffs,” he argued in an interview with Bild newspaper, though he added that production in Zwickau must be economically worthwhile for the Chinese side. Ostbeauftragte Elisabeth Kaiser (also SPD) said she is in contact with works councils and politicians in Lower Saxony to find a solution for the site.
Blume is already exploring an alternative path: building Chinese-market VW models in German factories as a way to fill capacity rather than close plants. But Stefan Bratzel, director of the Center Automotive Management (CAM), is sceptical. Chinese manufacturers, he points out, tend to favour lower-cost locations such as Hungary, Portugal or Turkey due to Germany’s ageing factories and high wage levels. The ADAC now rates Chinese EVs as qualitatively on a par with German models — awarding them a “good” grade — yet Bratzel sees no long-term fix in a co?production arrangement. “Labour costs in Germany must come down fundamentally,” he says.
The broader industry is also under duress. A CAM study covering the first half of 2026 found that 14 of the world’s 20 largest automakers posted sales declines, with an average drop of 2.8%. Volkswagen fared worse than the pack at minus 6.5%, while Mercedes-Benz and BMW beat the average. China’s BYD, meanwhile, slumped 15.7% globally and 39% in its home market — a vivid illustration of the demand squeeze hitting all corners of the sector.
Volkswagen at a turning point? This analysis reveals what investors need to know now.
For Volkswagen, the month of August will be decisive. The works meetings will test how far apart management and labour really are over plant closures, and whether the tariff card from Saxony can be turned into a credible rescue plan for Zwickau. With the stock still hovering close to its 52-week low, investors are watching for any sign of a breakthrough — or further deterioration.
Ad
Volkswagen Stock: New Analysis - 18 July
Fresh Volkswagen information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
