VW's North America Reset: A Boardroom Shuffle Meets a Deepening Cost-Cutting Drive
Published on 08/07/2026 at 14:05 | Redaktion boerse-global.de
Volkswagen is moving its sales leadership around like chess pieces, and the opening gambit targets its weakest board: North America. Marco Schubert, currently Audi's sales chief, is slated to take over the region's operations in September or October, according to Handelsblatt. His move triggers a chain reaction across the brand hierarchy—Sander steps into Audi's sales role, Jahn shifts to the core VW brand, and Biene takes the reins at Skoda.
The timing is no coincidence. First-half delivery figures for 2026 laid bare the urgency: VW shipments fell 6 percent, the steepest drop since 2022, while Audi fared worse with a 7 percent decline. In the US, the group's market share eroded from 4 to 3 percent. The pain was sharpest in Tennessee, where VW halted ID.4 production in Chattanooga and took a €0.5 billion writedown. A potential lifeline exists—pick-up truck assembly could start there by 2029, aligning with a broader industry pivot away from pure EVs toward the SUVs and trucks American buyers prefer.
The restructuring extends well beyond the showroom floor. IAV, the development subsidiary in which VW holds a 50 percent stake, plans to cut roughly 2,000 of its 5,000 positions by the end of 2027, leaving around 2,970 staff. An agreement with IG Metall rules out compulsory redundancies until the end of 2028, and all sites will remain open—Gifhorn is even slated for strengthening, with a new IT hub in Berlin as compensation. IAV, which generates about €900 million in revenue, had already shed 1,200 jobs in 2024 and 2025. A sale of the unit for roughly €0.5 billion remains a possibility.
The second-quarter numbers underscore the scale of the challenge. Group net profit fell to €1.54 billion between April and June, down 32.9 percent year-on-year. Yet the picture is uneven: the Core brand group—encompassing VW, Škoda, and other volume marques—improved its first-half operating result to €3.6 billion, a 4.5 percent gain. Management nonetheless trimmed its full-year revenue guidance from 0 to 3 percent growth to a range of minus 3 to 0 percent.
Berenberg analysts responded by cutting their price target from €113 to €100 on July 27, while maintaining a buy recommendation—a signal that even bullish observers are tightening their assumptions about operational risk.
The cost-cutting agenda reaches deep into the German factory network. CEO Oliver Blume has floated a "theoretical derivation" of around 50,000 job cuts worldwide, with plans to be tabled again in September negotiations. Reports suggest the board is preparing to close four domestic plants: Zwickau and Emden from 2031, Hannover from 2032, and the Audi site in Neckarsulm from 2034—together employing roughly 40,000 people. The existing employment guarantee, which ruled out compulsory layoffs until 2029, has been scrapped. Several works meetings are scheduled for late August to brief staff. Osnabrück faces its own rupture: from 2027, no more group models will be built there, with talks underway for a defense contractor to produce military transport vehicles instead.
Not everything points to retrenchment. VW has opened pre-sales for new full-hybrid powertrains in the Golf and T-Roc in Germany, with the first version delivering 125 kW (170 PS) and the Golf Hybrid in R-Line trim starting at €41,400. The upcoming electric compact family around the ID. Polo has drawn over 70,000 orders within weeks, and European EV orders jumped more than 50 percent in the second quarter.
When companies go through major operational shifts, workplace safety can easily slip down the priority list — leaving you exposed to costly compliance gaps. A free toolkit with 41 ready-to-use templates and checklists helps you document risks properly and keep your team protected through periods of change. Download the free Risk Assessment Toolkit
The share price tells its own story of investor caution. The stock traded at €75.42 on Friday, up 0.19 percent on the day, but down 27.59 percent since the start of the year and 30.87 percent below its December 52-week high. The previous session closed at €75.28, a 1.52 percent decline, with the year-to-date loss at 27.72 percent and the gap to the €109.10 December peak at 31.00 percent.
For shareholders, the calculus is straightforward: a stabilizing core brand, declining group profitability, and a sweeping workforce reduction are competing forces that will define the months ahead. Whether Schubert's team can arrest the North American slide will become evident in the next delivery numbers.
