Volkswagen Faces Court Payout, Union Talks and a Paused ID. Golf as Analysts Split on the Stock

Volkswagen has been ordered by the Braunschweig labour court to hand a dismissed manager roughly EUR 300,000 in back pay, a ruling the group says it will review. The court found on Friday that the dismissal itself was lawful, but that it only takes effect as an ordinary, notice-period termination — a distinction that leaves the salary claim intact even though the manager stays gone. Volkswagen has signalled it may challenge the decision.

The ruling lands in the middle of a far larger argument over pay. According to a Spiegel report, the company has stepped back from a blanket, group-wide wage freeze, though zero-increase rounds running through 2030 remain on the table. Volkswagen declined to comment on the report on Friday.

A nine-month loss that frames the cost debate

The scale of the pressure is visible in the figures Volkswagen published on 29 October. Revenue for the first nine months of 2026 came in at EUR 233.4 billion, but operating profit collapsed to EUR 0.1 billion from EUR 5.4 billion a year earlier. Special items drained EUR 8.7 billion from the result; stripping those out, operating profit stood at EUR 8.8 billion. For the full year, management is guiding towards roughly EUR 315 billion in sales and an operating margin of up to 1%.

The third quarter alone brought a EUR 5.8 billion loss, which the group blamed on a weak China business, pricing pressure and lower-margin electric vehicles. Volkswagen described the numbers as underlining "immediate pressure to act."

Should investors sell immediately? Or is it worth buying Volkswagen?

That pressure runs right down to the model lineup. Development work on the electric ID. Golf has been paused until financing for the required investment is secured. The Brand Group Core posted operating profit of EUR 4.33 billion for the nine months, with its operating return slipping to 4.1% from 4.4%. Volkswagen cited restructuring charges, the planned sale of Volkswagen Osnabrück GmbH and the already halted ID.4 production in Chattanooga as drags on the result.

Analysts converge on a cautious middle ground

Deutsche Bank Research cut its price target to EUR 100 from EUR 105 on 2 November while keeping a Buy rating, pointing to a conversation with finance chief Arno Antlitz about restructuring and cost reduction as well as the difficult situation in China. Bernstein Research followed on 5 November, resuming coverage with a Market-Perform rating and an EUR 80 target — its first assessment since the nine-month results were released.

Labour talks set for Emden and Zwickau

Negotiations between Volkswagen and IG Metall over the terminated collective agreements and both sides' demands are due to open on 24 November in Emden, with the company naming lower labour costs and improved competitiveness as its goals. Talks are scheduled to continue on 15 December in Zwickau.

At charging subsidiary Elli, the realignment reportedly involves withdrawing from wallbox sales and from building charging infrastructure for corporate clients. Job cuts are under negotiation, while the charging network, fleet solutions and green electricity offerings are to continue.

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