Volkswagen outlines deep cost cuts, shares under analyst scrutiny

By Thomas Klein, Operations & Strategy desk. Reviewed prior to publication on 2026-06-23, 08:20.

Volkswagen (DE0007664039) is moving forward with a far-reaching cost-cutting program that includes up to 28,000 voluntary staff departures in Germany as part of its long-term transformation. The DAX-listed group’s austerity course and efficiency targets remain in focus for investors on Xetra, as recent shareholder discussions and analyst assessments underline.

What recent reports highlight

According to a summary of the latest shareholder meeting coverage, Volkswagen chief executive Oliver Blume is maintaining a stringent savings plan that foresees around 28,000 voluntary withdrawals from the workforce over several years, primarily through partial retirement and severance offers in Germany. Handelsblatt coverage of the VW AGM Shareholder representatives have criticized the company’s share-price performance and called for clearer progress on profitability and electrification milestones.

The group is pursuing a multi-year performance program that targets billions of euros in cost reductions, with personnel savings forming a substantial component alongside measures in procurement, production, and overhead functions. Volkswagen performance program announcement Management has linked these efforts to improving returns in the core Volkswagen Passenger Cars and VW Commercial Vehicles brands, which compete directly with peers such as Stellantis and Renault in the mass-market segment.

Analyst consensus and valuation picture

On the analyst side, data compiled by MarketScreener show that Volkswagen preferred shares last closed at around 80.32 euros, while the average target price from covering houses stands near 111.40 euros, implying a substantial upside on paper. MarketScreener consensus overview for Volkswagen The consensus rating skews towards Buy and Outperform, though some institutions signal caution on execution risks and Chinese competition.

Royal Bank of Canada, for instance, reaffirmed an Outperform stance but trimmed its target price to 131 euros in an April update, citing a more measured view on the pace of margin improvement and the capital required for the electric-vehicle rollout. Analyst note summary on the RBC Volkswagen update Against this backdrop, the stock trades at a discount to many global auto peers on traditional valuation metrics such as earnings and book value.

How Volkswagen earns its money

Volkswagen generates the bulk of its revenue from the sale of passenger cars and light commercial vehicles under brands including Volkswagen, Audi, Škoda, Seat/Cupra and Volkswagen Commercial Vehicles, complemented by luxury nameplates such as Porsche, Bentley and Lamborghini. The company also operates financial services, offering leasing, financing and fleet management solutions for its vehicles worldwide.

Where the Volkswagen shares trade today

The Volkswagen preferred shares (DE0007664039) most recently traded on Xetra at 79.56 euros as of 2026-06-23, 07:45, according to exchange data.

This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. All data are based on sources considered reliable, but completeness and accuracy cannot be guaranteed.