Volkswagen Confronts a Pivotal Week: Bosch Split, Profit Warning Risks, and a Battle Over 100,000 Jobs
Veröffentlicht: 07.07.2026 um 19:13 Uhr, Redaktion boerse-global.de
The day Volkswagen formally severed its four-and-a-half-year alliance with Bosch for autonomous driving, its shares touched a 52-week low of €69.20. That mark, hit on 1 July 2026, underscores just how much pressure the automaker is under as it enters one of its most consequential weeks in years. The stock has since clawed back to €75.92, but the broader picture remains deeply challenged.
That challenge comes to a head on Thursday, when Volkswagen’s supervisory board meets to decide on a radical cost-cutting programme. According to reports, management is considering closing four plants and eliminating up to 100,000 jobs worldwide — double the figure previously rumoured. UBS analyst Patrick Hummel has warned that a major profit warning is likely, with the earnings gap potentially running into the mid-to-high single-digit billions. The IG Metall union has called for a company-wide day of action to coincide with the meeting, vowing to block any job cuts.
The decision to walk away from the Bosch partnership, which had absorbed around €1.5 billion of joint investment between VW’s software arm Cariad and the Stuttgart-based supplier, reflects a broader strategic shift. Rather than continue co-developing automated driving systems, VW will now rely on external acquisitions to accelerate progress. The move acknowledges the slow pace of the alliance but carries the risk of losing control over key technologies.
Should investors sell immediately? Or is it worth buying Volkswagen?
Beyond the software pivot, Volkswagen’s core business is buckling under multiple pressures. Its once-dominant China operation is losing ground fast amid an aggressive price war and weak electric-vehicle sales. Some long-standing VW dealers have begun adding rival brands to their showrooms to spread their risk. At the same time, the profitable Porsche subsidiary is cutting around 4,000 positions in administration and development after its operating profit collapsed from €5.6 billion.
On the combustion-engine front, Volkswagen has already stopped selling the diesel-powered Golf in the UK as of 5 July 2026, citing a sharp drop in demand. The move is a clear signal that the group is accelerating its retreat from diesel, even as it struggles to scale its EV offerings profitably.
Chart-wise, the stock remains under its key moving averages. The current price sits about 19% below the 200-day line of €94.06, and the relative strength index of 38.6 points to a strained but not yet oversold market. The stock is down roughly 28% since the start of the year. Investors now have two clear catalysts to watch: Thursday's board decision on the restructuring plan and the second-quarter earnings release scheduled for 24 July. With the volatility reading already near 32%, either event could trigger sharp moves.
Ad
Volkswagen Stock: New Analysis - 7 July
Fresh Volkswagen information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
