VW's Preferred Shares Slip as Cost-Cutting Ultimatum Collides With a North American Reset
Published on 08/10/2026 at 16:11 | Redaktion boerse-global.de
The preferred shares of Volkswagen opened the new trading week on the back foot, easing 1.05 percent to EUR 75.38 on Monday, as investors digested the automaker's second consecutive quarterly profit decline. The stock now sits just 8.93 percent above its 52-week low of EUR 69.20, with the year-to-date loss stretching to 27.62 percent.
The latest earnings report, published at the end of July, laid bare the scale of the challenge. Net profit after taxes for the second quarter came in at EUR 1.54 billion, a 32.9 percent drop from the EUR 2.29 billion recorded in the same period a year earlier. The operating result also missed market expectations by ten percent, though the free cash flow figure proved more resilient than analysts had anticipated. The company's market capitalization currently stands at around EUR 36 billion.
Family Holding Turns Up the Heat
Pressure is mounting from the top. Porsche SE, the holding company of the Porsche and Piëch families that serves as Volkswagen's anchor investor, is publicly pushing for swift decisions on the cost-cutting program. According to Reuters, the major shareholder wants to see concrete savings measures implemented without further delay. For market participants, the message is unmistakable: the group's most important long-term backer believes the restructuring needs to move faster.
The austerity drive has been taking shape since early July, when the management board presented a twelve-point initiative package and a "Target Picture 2030" to the supervisory board. The plans include slimming the model lineup by up to 50 percent and cutting the number of available equipment options by up to 75 percent. Decisions on potential plant closures and job reductions, however, have been deferred until after the summer break.
Adding to the strain is Audi, Volkswagen's premium subsidiary, which on July 27 sharply lowered its 2026 guidance. The brand now expects roughly EUR 5 billion less in revenue along with shrinking margins, citing constrained business in China and the United States.
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A Leadership Shake-Up in the US
Against this backdrop, Volkswagen is moving to overhaul its struggling North American operations. Marco Schubert, currently head of sales at Audi, will take charge of the US business, replacing Kjell Gruner, who is leaving the company. The management change was first reported by Handelsblatt and confirmed by a company source speaking to Reuters.
The leadership swap comes at a delicate moment for the US division. At the Chattanooga plant in Tennessee, production of the electric ID.4 was halted earlier this year after US subsidy conditions for EVs shifted. Volkswagen is now weighing how to proceed with a planned pickup truck — whether to develop it alone or in partnership with another manufacturer such as Ford — with a decision expected in the coming weeks and months.
Despite the EV setback, the company is signaling its commitment to the Tennessee site. Today, Volkswagen is unveiling the new Atlas Cross Sport at Chattanooga, a model that will also be built there. The timing underscores that the factory remains central to the US strategy even as the management team is reshuffled.
Delivery Growth Offers a Counterpoint
Not all the news is gloomy. In its half-year report, Volkswagen said it delivered approximately 4.1 million vehicles in the first six months of 2026. More notably, the order backlog for pure electric vehicles in Europe climbed by more than 50 percent — a sign that demand for battery-powered models on the home continent is picking up even as overall profitability stays under pressure.
Analysts have responded cautiously to the mixed picture. Berenberg trimmed its price target on the preferred shares from EUR 113 to EUR 100 on July 27, while maintaining a "Buy" rating. Analyst Romain Gourvil pointed to solid free cash flow as a positive, but flagged persistent challenges in China. Another bank had previously cut its target from EUR 99 to EUR 90, also keeping a buy recommendation.
The shares found some footing on Friday, closing 1.20 percent higher at EUR 76.18. Yet the longer-term trend remains bearish: the stock is trading 17.23 percent below its 200-day moving average, and the year-to-date decline stands at 26.86 percent.
In a separate pilot project, Volkswagen is testing new transport logistics on factory grounds and public roads in Kassel together with partners MIRA and L.I.T. — an initiative that has no immediate bearing on the share price but illustrates the breadth of operational activity underway.
The next set of quarterly figures is due on October 29, which will offer the first indication of whether the US measures and cost-cutting efforts are beginning to take hold. For now, the central question for investors remains how quickly Volkswagen can translate the demands from Porsche SE into concrete action — and whether that will be enough to lift the shares away from their 52-week low.
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