Volkswagen is barrelling toward a historic rupture between its management and workforce, with CEO Oliver Blume reportedly prepared to bypass the supervisory board and take his radical restructuring plans directly to shareholders. The flashpoint is a proposal to eliminate up to 100,000 jobs globally—double the number initially floated—and potentially shutter four German plants. If the board refuses to approve the cuts at its scheduled meeting on July 9, 2026, Blume could call an extraordinary general meeting, a move that would mark an open break with labour representatives.
The scale of the proposed overhaul is staggering. The plants in Hannover, Zwickau, Emden and Audi’s Neckarsulm site are all on the chopping block. The job losses, envisaged under a new “Zielbild 2030” blueprint, would slash roughly 15% of the total workforce. Union leaders and the IG Metall have already pledged “bitter resistance,” and the state of Lower Saxony, which holds a 20% blocking stake, is lining up against any closures.
Financial pressures mount
The drastic measures are rooted in deteriorating numbers. In the first quarter of 2026, Volkswagen’s revenue slipped 2% to €75.7 billion, while operating profit plunged 14.3% to €2.5 billion. The operating return on sales fell to 3.3% from 3.7% a year earlier. The group is clinging to its full-year margin target of 4.0% to 5.5%, but intensifying competition and geopolitical headwinds are making that goal increasingly elusive.
The stock market has taken a bleak view. The shares touched a 52-week low of €69.20 on July 1, then closed that day at €70.58. They staged a modest recovery the following session to €71.68. Over the past seven trading days alone, the stock lost 8.62%, and over the past 30 days it has shed nearly 22%. Since the start of 2026, Volkswagen’s equity has tumbled more than 33%, and the share price now sits more than 35% below the 52-week high of €109.10 reached last December.
Selling off the family silver to fund the future
To help finance its electric-vehicle transition, Volkswagen is offloading non-core assets. It recently sold its marine engine division, Everllence, to Bain Capital for approximately €7.4 billion. Speculation is also swirling about the potential disposal of luxury brands Ducati and Lamborghini. Analysts value Lamborghini alone at over €22 billion, a sum that would provide a significant war chest for the electrification push.
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On the product front, there is a rare bright spot: the launch of the ID.3 Neo. Early reviews highlight markedly improved software, and the top-spec model starts at around €45,000. Whether that can offset the broader gloom remains unclear.
Political pushback and a compromise proposal
Resistance to the job cuts is hardening. Lower Saxony’s economy minister, Olaf Lies, has floated a potential compromise: build Chinese-developed models in Germany to keep domestic factories running. The idea would leverage Volkswagen’s global partnerships to utilise capacity that might otherwise sit idle. But relations are already strained. The supervisory board, where labour representatives and the state hold sway, could block the entire restructuring, forcing Blume to choose between retreat and escalation.
Technical signals flash extreme oversold
The market’s anxiety is reflected in extreme chart readings. The relative strength index (RSI) fell to 20.1 on the day of the low—well below the 30 threshold that traditionally signals oversold conditions. The next day it recovered to 24.5, but the gap to the 50-day moving average remains wide at 16%, and the 200-day average of €94.41 is more than 25% above the current price. Volatility is running high: the annualised 30-day figure stands at 28.33%.
All eyes are now on July 9. If the board endorses the plan, Germany faces a bruising industrial conflict. If it rejects it, Blume may take the fight to the shareholders’ meeting, triggering an unprecedented power struggle at the heart of Europe’s largest carmaker. Until then, the shares are likely to remain volatile, caught between deep value and deep uncertainty.
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