Volkswagen AG manufactures automobiles and commercial vehicles across Europe, Germany, North America, South America, the Asia-Pacific, and other international markets. It operates through three segments: Passenger Cars and Light Commercial Vehicles; Commercial Vehicles; and Financial Services. The Passenger Cars and Light Commercial Vehicles segment develops vehicles, engines and motors, vehicle software, and vehicle batteries, and produces and sells passenger cars, light commercial vehicles, and parts, including compact cars, luxury vehicles, motorcycles, and mobility solutions. The Commercial Vehicles segment develops vehicles, engines, and motors, and produces and sells trucks, buses, parts, and related services. The Financial Services segment covers dealership and customer financing, leasing, direct banking, insurance, fleet management, and mobility services. The company is also involved in large-bore diesel engines, turbomachinery, and propulsion components. It sells products under brands including Volkswagen Passenger Cars, Škoda, SEAT/CUPRA, Volkswagen Commercial Vehicles, Audi, Lamborghini, Bentley, Ducati, Porsche, Scania, MAN, Volkswagen Truck & Bus, TRATON, Bugatti Rimac, and international commercial vehicles brands to individual, corporate, and fleet customers. Founded in 1937 and headquartered in Wolfsburg, Germany, Volkswagen AG operates as a subsidiary of Porsche Automobil Holding SE.
Volkswagen Cuts 2026 Profit Outlook on China Slump and Porsche Writedown
Volkswagen has dramatically cut its 2026 profit outlook, now expecting an operating margin of no more than 1% this year, down from its previous forecast of at least 4%. The German carmaker expects around €10 billion, or $11.5 billion, in charges this year, including restructuring costs tied to workforce reductions and writedowns on Chinese assets; that total includes a €6-billion writedown related to Porsche, reflecting revised long-term expectations for the sports-car maker. Excluding the exceptional charges, Volkswagen said its operating margin would be around 4%. Volkswagen shares fell more than 7% following the announcement, dragging other automakers lower. Chief Financial Officer Arno Antlitz said the Chinese market has contracted by around 20%, with no stabilization currently in sight, while Chinese automakers take domestic share and expand into Europe with competitively priced electric vehicles. Volkswagen also said growing EV sales are weighing on profitability at its Volkswagen passenger-car and Audi businesses, and it recently reached an agreement with labor representatives that could increase planned job cuts to 100,000 globally.
Germany Urges EU Action Against China to Defend Carmakers
German Finance Minister Lars Klingbeil called on the European Union on Thursday to step up action against what he called China's unfair trade practices in order to protect Germany's struggling carmakers. Speaking during a visit to Volkswagen's headquarters in Wolfsburg, Klingbeil said Berlin would press Brussels for concrete measures in areas including plug-in hybrids and local content requirements, adding that Germany cannot be naive in its dealings with China and needs a clear signal at a European level. Volkswagen staff representative and supervisory board member Daniela Cavallo backed demands for higher tariffs on Chinese-made hybrids, saying the company faces enormously tough, difficult and unfair competition with China, while Olaf Lies, leader of the German state of Lower Saxony, a major Volkswagen shareholder, said Germany still needs China as a partner but must have the same rules as those applied there. Since 2024 the EU has levied higher tariffs on Chinese-made electric cars, alleging they benefit from unfair state subsidies, and calls have grown for those levies to be extended to hybrid vehicles. Volkswagen recently announced plans to axe a further 50,000 positions globally, taking total projected job cuts to 100,000 in the coming years, or around 15 percent of its workforce, and the IG Metall union has organised nationwide protests for Monday, expecting around 100,000 workers to participate across the country at major manufacturers and suppliers.
Morgan Stanley Downgrades Stellantis to Underweight, Cuts Target to $5.20
Morgan Stanley downgraded Stellantis to Underweight from Equal Weight and cut its price target to $5.20 from $8.00, sending the automaker's shares down more than 2% on Monday. The rating change came as part of a broader review of European automakers by analysts led by Javier Martinez de Olcoz Cerdan, who cited changes in Stellantis' inventories and incentives and said the product pipeline is lagging behind peers, potentially limiting the company's ability to reduce investment as cash generation declines. Morgan Stanley said Stellantis has the widest risk/reward skew in the sector, flagging refinancing as one potential risk, while asset disposals or changes to the United States-Mexico-Canada Agreement could affect its outlook in other scenarios. In the same review, Morgan Stanley upgraded Renault to Equal Weight from Underweight and raised its price target to €31 from €25, calling it the company with the largest increase in its estimates, and maintained Overweight ratings on Mercedes-Benz and BMW, lifting its Mercedes-Benz target to €59 from €58 and its BMW target to €76 from €74, with Mercedes-Benz remaining its preferred stock in the sector. Volkswagen's price target was raised to €89 from €77 with its Equal Weight rating maintained, Porsche stayed Underweight, and Morgan Stanley said it believes the cyclical margin bottom is behind us, raising its 2026 and 2027 estimates for the European automotive sector for the first time since April 2024, with forecasts now slightly above consensus.
Tesla's U.S. EV Share Climbs to 52% as Rivals Retreat
Tesla expanded its share of the U.S. electric-vehicle market to 52% through August, up from 43% a year earlier, according to Motor Intelligence data cited by The Wall Street Journal. The gain came even as Tesla's own deliveries fell 16% to 325,351 vehicles and the broader U.S. EV market contracted 30%. The shift partly reflects competitors retreating from electric vehicles after federal incentives expired, with Ford, General Motors and other manufacturers cutting output or discontinuing models including the Honda Prologue, Volkswagen ID.4 and Ford F-150 Lightning. Tesla's Model Y remained its strongest seller, with deliveries down 2% this year and the SUV accounting for about one-third of U.S. EV purchases, while Model 3 sales fell 34% and Cybertruck sales totaled 9,769 units. Analysts expect Tesla to maintain its U.S. lead while rivals remain cautious, though stronger competition could return if EV demand improves or lower-cost battery technology emerges.
Volkswagen Estimates Cost of Job Cuts and Plant Closures at About 16 Billion Euros
Volkswagen, the German auto giant, is estimated to face total costs of about 16 billion euros, or 18.6 billion dollars, from job cuts and possible plant closures carried out as part of the restructuring plan it announced last week, according to people familiar with the matter. A company spokesperson declined to comment. According to the sources, the phased reduction of production in Emden and Zwickau will cost about 1 billion euros each, while the plants in Neckarsulm and Hanover will incur costs of 2 billion euros each. In addition, about 10 billion euros is expected to be booked as the cost of cutting up to 60,000 jobs worldwide.
JSW and Volkswagen sign non-binding MoU for India JV
JSW Group and Volkswagen Group have signed a non-binding memorandum of understanding for a proposed 51:49 joint venture in India's passenger vehicle market, according to a report by The Economic Times. The agreement initiates exclusive negotiations on valuation and other terms, with a target final binding agreement by the end of 2026. The proposed alliance would be housed in a new entity involving JSW and Skoda Auto Volkswagen India Pvt Ltd, separate from JSW's existing ventures, including its partnership with SAIC Motor. The joint venture would initially cover the eight Skoda and Volkswagen models sold in India, with potential future inclusion of Volkswagen's luxury brands Audi, Porsche, Lamborghini, and Bentley. A key issue in the valuation is Volkswagen's potential tax liability of about Rs200 billion ($2.10 billion) related to alleged customs duty circumvention, which JSW is unlikely to assume.
UST completes majority takeover of Italdesign from Audi
US technology company UST has completed its purchase of a majority stake in Italian design and engineering firm Italdesign from Audi Group, part of Germany's Volkswagen. The deal, whose financial terms were not disclosed, was signed in December 2025. Following completion, UST now has majority control and operational oversight of Italdesign, which employs more than 1,300 people across ten sites worldwide. UST, headquartered in California, plans to back Italdesign's growth across its international footprint spanning over 30 countries. Lamborghini, Audi's performance-vehicle arm and formerly Italdesign's parent, retains a significant stake and remains within the Audi Group, while Audi will continue to work with Italdesign as a client and strategic partner. The combined offering will span from concept and design to hardware and software development and production systems, leveraging UST's expertise in digital engineering, AI, and technology transformation.
Volkswagen agrees to sell Osnabrück plant for defence production
Volkswagen Group has reached an agreement with the State of Lower Saxony and Aurelius Capital on the possible sale of its Osnabrück manufacturing site, with plans to convert it for defence equipment production. Under the deal, Aurelius will become the majority owner of Volkswagen Osnabrück GmbH alongside the State of Lower Saxony, aiming to preserve the site long-term. The partners intend to develop the site into a competence centre for security and defence solutions, with an initial anchor project involving cooperation with Rafael Advanced Defense Systems to potentially manufacture air defence systems for Germany and Europe. Volkswagen decided in 2024 to phase out vehicle production at Osnabrück by summer 2027, and the site currently builds the outgoing first-generation T-Roc SUV, with around 10,000 units expected this year. Volkswagen CEO Oliver Blume said the agreement opens a new industrial future for the site, while Lower Saxony's Minister-President Olaf Lies highlighted the skilled workforce and Europe's changed defence needs. Works Council Chairwoman Daniela Cavallo noted that more than 1,200 employees now have a prospect for their future at the site.
Volkswagen to Sell Osnabrueck Plant for Israeli Defence Production
Volkswagen announced Monday that it will sell its Osnabrueck plant in northwest Germany to Tel Aviv-based investors Aurelius Capital and the German state of Lower Saxony, a major VW shareholder, to be converted for defence equipment production, with an initial air defence project planned for Israeli firm Rafael Advanced Defence Systems. The sale price was not disclosed. The deal guarantees at least 1,200 of the factory's 1,800 jobs will be preserved, according to VW's works council. The project with Rafael will focus on manufacturing systems and components for air defence systems for Germany and Europe. This move is part of Volkswagen's sweeping overhaul, which includes cutting 100,000 jobs across the group in the coming years, as it battles Chinese competition and weak demand. The Osnabrueck site, which dates back 125 years, currently produces the Volkswagen T-Roc Cabriolet and Porsche models, and vehicle production is set to end there by 2027.
Audi unveils compact A2 e-tron to boost European sales
Audi introduced a new compact electric vehicle, the A2 e-tron, in Paris on Monday to strengthen its presence in the smaller end of the European market, where Chinese automakers are launching more affordable models, and to help revive its global sales. Sales at Audi, a unit of Volkswagen, have fallen for two consecutive years and slid 7% in the first half of 2026 due to fierce competition in China and U.S. tariffs. The A2, a revival of a nameplate from the early 2000s, boasts low power consumption of 12.8 kilowatt hours per 100 km, making it the most efficient model in the brand's history, with a maximum range of 646 km. Deliveries will begin in December from the Ingolstadt plant. Audi CEO Gernot Doellner said the company is reviewing its Neckarsulm plant, one of four German Volkswagen plants threatened with possible closure after 2030, and will work with unions to optimize the factory.
Volkswagen CEO Blume Wins Unanimous Board Vote for Restructuring
Volkswagen CEO Oliver Blume secured a unanimous 20-to-nothing supervisory board vote on September 3 for the deepest restructuring in the company's 89-year history, a feat that eluded his three predecessors since 2006. The plan includes cutting roughly 50,000 more jobs, shrinking the model portfolio by about 50% by 2035, and targeting a 9% operating margin by 2030, with €135 billion earmarked for capital spending and research between 2027 and 2031. To win approval, Blume conceded to deferring decisions on four German plants and dropping a proposal to carve out Volkswagen Passenger Cars and Components. The board also agreed to limit its own reserved approval rights to align with standard DAX practice, a structural change that reduces its intervention in management decisions. Volkswagen shares rose as much as 10% in Frankfurt on September 4, but remain down over 20% for the year, reflecting ongoing challenges in China and excess European capacity of more than 500,000 units.
Volkswagen shares surge on plan to cut 50,000 jobs
Volkswagen's Frankfurt-listed shares rose more than 8% on Thursday after its supervisory board approved a plan to cut 50,000 additional jobs, doubling its total workforce reduction target to about 100,000 positions by 2030, roughly 15% of its global staff. The market cheered the move, which is part of a 12-part overhaul called the most extensive transformation in the company's 89-year history, aiming for a 9% operating margin by 2030, up from 3.8% in the first half of this year. The plan also includes halving its model lineup and reducing vehicle complexity by about 75%, while reviewing the future of four German plants. Union support, representing over 650,000 workers, helped avoid a strike and eased tensions with Lower Saxony, its second-largest shareholder. However, risks remain, including projected China joint-venture profit falling to between 200 million and 600 million euros this year, down from 958 million euros in 2025, and competitive pressure from Chinese EV makers like BYD.
Dow closes down 271 points after strong jobs data, raising Fed rate hike expectations
All three major U.S. stock indices closed lower on Friday, with the Dow falling 271.86 points, or 0.51%, to close at 53,414.25. The S&P 500 fell 0.38%, and the Nasdaq fell 0.29%. This followed August nonfarm payrolls increasing by 162,000 jobs, far exceeding economists' forecast of 53,000, while the unemployment rate held steady at 4.1%. This led investors to increase expectations that the Fed will raise interest rates by 0.25% at its meeting this month. CME's FedWatch indicated the probability of a rate hike rose to 58.4% from 49.4% on Thursday. The 2-year Treasury yield surged to its highest level since January 2025. Semiconductor stocks rose 3.4%, but Lululemon shares plunged 17.4% after cutting its full-year profit and revenue guidance, and Adobe shares fell 6.7% after announcing a CEO change. European markets closed mixed, with the STOXX 600 up 0.12% to 649.88. Volkswagen jumped 5.9% after reaching a business turnaround deal. WTI crude oil closed at $91.48 per barrel, up 0.2%, and Brent closed at $96.28 per barrel, up 0.8%.
US Automakers Urge Congress to Permanently Ban Chinese Cars
The Alliance for Automotive Innovation, the largest trade association in the U.S. automotive industry, has submitted a letter to members of Congress urging a permanent ban on the import of connected cars, as well as related software and hardware from China, citing risks to economic and national security interests. John Bozzella, the alliance's CEO, stated in the letter that Chinese automakers are flooding the market with government-subsidized vehicles equipped with internet-connected software and hardware worldwide, and requested expedited legislation to ban imports before the end of this year's session. The request reflects growing concerns about threats from Chinese automakers such as BYD and Geely. The organization represents U.S. automakers, including General Motors, as well as major foreign automakers like Toyota and Volkswagen. This move comes amid cheap Chinese electric vehicles capturing global market share and beginning to penetrate Canadian and Mexican markets, raising concerns among U.S. automakers that Chinese cars may soon enter the American market.
Volkswagen replaces North America CEO Kjell Gruner after sales drop
Volkswagen is replacing its top North American executive, Kjell Gruner, with Marco Schubert, effective October 1, following a prolonged sales slump that saw U.S. deliveries fall about 14% last year and continue declining around 7% in the first half of 2026. Schubert, a veteran with over 25 years at Volkswagen, will report directly to CEO Oliver Blume, a structural change signaling the region's priority. The appointment triggers a chain of executive moves across the group, including Martin Sander moving to Audi, Martin Jahn to the Volkswagen brand, Martina Biene to Škoda, and Christiane Zorn to lead Volkswagen Group Africa. Volkswagen faces pressure from tariffs, costing about $5.8 billion annually, and a restructuring plan that could cut up to 100,000 jobs, as first-quarter 2026 net profit fell 28% to €1.56 billion.
German economic magazine WirtschaftsWoche reported on the 3rd that Volkswagen (VW) Group plans to discontinue its Spanish car brand Seat by 2029, as confirmed in internal documents. VW is undertaking significant cost-cutting measures and will focus on Cupra, a brand spun off from Seat that specializes in hybrid and electric vehicles.
China Moves to Tighten 'China Speed' as AI Cuts Car Development Time to 18 Months
Bloomberg reports that China's auto industry is facing pressure from regulators, as intense competition and the adoption of artificial intelligence (AI) may allow manufacturers to develop a new car model from scratch to market in just 18 months, faster than the current process that takes about two years and leaving traditional foreign automakers, which typically take three to five years, far behind. While the speed of car development, known as "China Speed," has become a key advantage, regulators are beginning to worry that excessive acceleration may cause innovation to outpace regulation and quality control systems. Chinese authorities have therefore increased scrutiny with a one-year industry inspection, including unannounced factory visits, and are proposing to increase the mandatory road testing distance for new energy vehicles to 30,000 kilometers, up from roughly half that. Meanwhile, China is in the midst of its largest recall in history, with Tesla and eight other automakers having to fix more than 4.27 million electric vehicles to comply with new door requirements. Executives at major automakers such as Geely, Great Wall Motor, and Chery have warned of the risks of shortening development time too much, with Chery Vice President Li Xueyong stating that cars are not consumer goods that can be produced and replaced quickly, as they involve the safety of millions of families. However, slowing down may not be easy, as the market is flooded with hundreds of new models and AI is used in nearly every part of the industry chain. Meanwhile, foreign automakers like Volkswagen and Renault are also accelerating their development processes to catch up, with Volkswagen developing the ID.UNYX 08 electric SUV with Xpeng in just 24 months, while Renault developed the Twingo E-Tech in China in 21 months, a company record. But experts stress that real-world road testing over tens of thousands of kilometers remains a fundamental standard that cannot be replaced by technology.
IG Metall Warns VW Management of Maximum Resistance as Restructuring Conflict Continues
Germany's largest industrial union, IG Metall, has warned that it will offer maximum resistance if Volkswagen (VW) withdraws or revises the business restructuring plan previously agreed upon. Since July, VW management and the union have been at odds over a major restructuring, with management proposing a new plan that includes plant closures, divestment of some operations, and the elimination of around 50,000 jobs. IG Metall executive Torsten Gröger emphasized at a workers' meeting at the Hanover plant, one of the closure candidates, that "if the supervisory board tries to overturn the agreement, the workforce at all sites will react fiercely." The VW supervisory board is scheduled to meet on September 5 to vote on three competing restructuring proposals, and the situation could escalate, potentially leading to an extraordinary general meeting. Chief Financial Officer Arno Antlitz stated that while efforts are being made to preserve jobs, there are no viable alternatives for the plants in Hanover, Emden, Neckarsulm, and Zwickau, and that maintaining the status quo would result in a permanent cost burden of around 1.5 billion euros per year.
German business sector urges chancellor to take on China, fears unfair competition
Germany's business sector is stepping up pressure on Chancellor Friedrich Merz to adopt a tougher policy toward China, calling on the government to address unfair competition from Chinese rivals. This marks a shift in the stance of the business community, which had previously avoided supporting protectionist measures for fear of Chinese retaliation. Volker Treier, head of foreign trade at the German Chamber of Commerce and Industry (DIHK), said Germany should discuss the situation with China, and if it finds that competition is due to Chinese government subsidies or is unfair, action must be taken. This pressure comes as Germany's trade deficit with China, its largest trading partner, widened by around 22 billion euros last year to 89.3 billion euros (104.05 billion dollars), with imports up 8.8% and exports down 9.7%. German automakers such as Volkswagen have been overtaken by BYD in the Chinese market and are facing increasing competition from Chinese carmakers expanding into Europe. OECD data shows that Chinese manufacturers receive government support as a share of revenue that is roughly 3-8 times higher than their OECD counterparts, with subsidies accounting for nearly 60% of the increase in Chinese companies' global market share. Merz's coalition government has begun to signal a tougher stance toward China, seeking to reduce economic dependence, while still emphasizing that China is an important trading partner. On Wednesday (August 26), Merz said he had tasked the cabinet with preparing proposals to address the trade imbalance between the EU and China, following disagreements within the coalition. Germany's stance will help shape the EU's trade policy toward China, as the EU and China are scheduled to hold trade talks in October.
Volkswagen CEO warns of critical crisis amid largest ever restructuring
Volkswagen's CEO has warned of a "more than critical" crisis as the group prepares its largest ever restructuring, including potential job cuts, possible factory closures and broad internal cost reforms. The sweeping overhaul responds to global challenges and intense competition, and has raised concerns over workforce morale and the future shape of Volkswagen's production network. The restructuring decisions can influence how its €37.3 billion business allocates production and jobs across Europe, Germany, North America, South America and the Asia Pacific. The crisis language also cuts across the thesis that electrified models and digital services will steadily improve profitability resilience, especially given the ID.4 battery defect lawsuit and recalls.
Lower Saxony premier calls on stakeholders to unite to avert VW plant closures
Lower Saxony Premier Stephan Weil said on the 24th that as Volkswagen, which is headquartered in the state, works to avoid plant closures, the company's stakeholders need to cooperate to find solutions in order to protect industry in the state. Speaking at a VW plant in Hanover, he said Lower Saxony is a hub for the automotive industry and must remain one. The plant is one of five facing possible closure. Weil sits on the company's supervisory board alongside members of the founding family and worker representatives, and spoke ahead of a series of employee meetings scheduled for this week. At the meetings, employees will have their first opportunity to question CEO Oliver Blume about the restructuring plan he has presented. Blume has said that to improve cost competitiveness, the company may cut a further 50,000 jobs in addition to the 50,000 job reductions already agreed.
India's Tata to acquire Porsche consulting arm MHP
India's IT major Tata Consultancy Services has announced it will acquire MHP, the automotive and consulting arm of Porsche, the sports car maker under German auto giant Volkswagen. As part of a five-year comprehensive partnership including the acquisition, Porsche will contribute 1.25 billion euros, or 1.46 billion dollars, to TCS and MHP. The acquisition values MHP at 320 million euros and is expected to close within three to four months. The partnership will also advance the deployment of artificial intelligence across Porsche's engineering, manufacturing, operations, and customer experience, as well as the development of platforms for automotive technology and software-defined mobility.
VW employees dissatisfied with management communications, anxious about plant futures
A survey conducted by Volkswagen's works council has found that public statements by management have unsettled employees and their families and bred distrust. The survey showed concerns about job security, the future of early retirement and severance schemes, and the outlook for the plants in Emden, Hanover, Neckarsulm, Osnabrück, and Zwickau. CEO Oliver Blume indicated in an internal memo that these four plants are not expected to reach competitive capacity utilization in the 2030s, but stressed that no concrete plant closures have yet been decided. Blume has denied accusations that he is withholding information and is scheduled to address employees at an extraordinary meeting in Wolfsburg on the 25th.
QuantumScape Shares Rise 11.4% Since Narrower-Than-Expected Q2 Loss
QuantumScape Corporation shares have gained about 11.4% since the company reported a narrower-than-expected second-quarter 2026 loss of 16 cents per share, beating the Zacks Consensus Estimate of a loss of 18 cents. GAAP net loss narrowed 14.4% year over year to $98.24 million, while total operating expenses fell 14.1% to $106.13 million. The company announced a multi-year partnership with Honda and updated its collaboration with Volkswagen Group's PowerCo, and it created three business verticals targeting electric vehicles, AI data centers, and aerospace and defense. QuantumScape lowered its full-year 2026 capital expenditure guidance to $27-$37 million from $40-$60 million and ended June with $859 million in liquidity. Analysts have revised estimates upward since the report, and the stock carries a Zacks Rank #3, or Hold.
Volkswagen expects to reach partnership agreement in India this year, says Skoda CEO
Klaus Zellmer, CEO of Czech automaker Skoda Auto, a unit of German auto giant Volkswagen, said on the 19th that Volkswagen expects to sign a deal with a local Indian partner this year. The Volkswagen Group has struggled to scale up its business in the Indian market, and Skoda is responsible for the group's India strategy. Volkswagen is currently in talks with Indian steel major JSW Group about a joint venture, and JSW has indicated it wants to acquire a majority stake. Speaking to reporters at a Skoda event in Mumbai, Zellmer said Volkswagen is in discussions with an undisclosed partner candidate and is confident of signing a deal this year, adding, "I am deeply convinced that with a partner that has a strong local foundation, our momentum will strengthen further." Zellmer also told Indian newspaper The Economic Times that Volkswagen is open to ceding management control in India's fast-growing market, which is attracting investment from automakers around the world. Securing a partner would allow Volkswagen to share investment risk. Volkswagen doubled its sales in the Indian market last year and increased profit by 50 percent, but despite operating in the country for more than two decades, it has still not reached sufficient scale. Volkswagen began looking for a new partner in 2022 after partnership talks with Mahindra & Mahindra fell through.
Hesai Group Q2 Revenue Rises 22% on Strong LiDAR Demand
Hesai Group reported second-quarter 2026 revenue growth of 22% year over year to RMB 861 million, with gross margin of 40% and GAAP net income up 60% to RMB 71 million, marking a fifth consecutive quarter of GAAP profitability. Total LiDAR shipments exceeded 628,000 units, up nearly 80%, driven by ADAS and robotics demand, and the company announced design wins with Great Wall Motor and Volkswagen-related brands. Strategic growth initiatives generated RMB 45 million in revenue, prompting Hesai to raise its full-year 2026 SGI outlook to RMB 200 million to RMB 300 million, with management expecting the segment to reach about US$100 million in revenue and break even in 2027. For the third quarter, Hesai forecasts total revenue of RMB 1.1 billion to RMB 1.15 billion and LiDAR shipments of roughly 800,000 to 850,000 units, while reiterating its full-year shipment forecast of 3 million to 3.5 million units.
Automakers turn to new lubricant blends amid motor oil crisis
Automakers including Stellantis and Volkswagen are turning to new lubricant blends as motor oil shortages worsen due to the Iran war, the Financial Times reported. Supply chains for high-quality Group III base oils were severely disrupted after Iran struck Shell's gas-to-liquids plant in Qatar in March, and prices have nearly tripled from prewar levels to about $4,000 per ton in Europe and the U.S. Stellantis said it evaluated reformulated lubricants and secured alternative products that meet industry standards, while Volkswagen said it has secured supplies for now and is evaluating additional sourcing options. Toyota and Suzuki have also secured alternative supplies, and Nissan informed dealers of reduced production capacity for most lubricant products and said it would constrain supplies of its high-quality motor oil. Holly Alfano, CEO of the Independent Lubricant Manufacturers Association, warned that alternative suppliers have limited volumes and any renewed shipping disruption, refinery outage or other supply shock could rapidly worsen the situation.
Lamborghini debuts $741,172 Revuelto SV at Monterey with scarcity strategy
Lamborghini unveiled its most extreme production car, the Revuelto SV, at The Quail during Monterey Car Week, with a starting price of $741,172 and a 1,050-horsepower naturally aspirated hybrid V12. Limited to 1,963 units, the SV is the latest in a line of special cars dating back to the 1971 Miura SV, and CEO Stephan Winkelmann said pre-selling response has been very good. The car set a production-car lap record at Hockenheimring and will begin reaching customers in 2027, with the limited run representing at least $1.47 billion in potential sales. Winkelmann emphasized that Lamborghini is deliberately keeping volumes conservative to maintain scarcity and pricing power, even as first-half 2026 revenue climbed while unit deliveries slipped. A manual transmission is not planned for the SV despite competitor offerings, with Winkelmann noting low historical demand for stick shifts in Gallardo and Murciélago models.
CloudSEK Identifies Over 2,500 Organisations Potentially Impacted by AI Supply Chain Exposure
CloudSEK has identified more than 2,500 organisations that may have been potentially affected by a major AI supply chain incident involving LiteLLM in March 2026, with approximately 434,000 automated software-development pipelines linked to the exposure. The potentially affected organisations span critical industries including technology, cybersecurity, banking and financial services, telecommunications, manufacturing, consulting, logistics, and enterprise software, with high-confidence matches associated with major global organisations including NVIDIA, Samsung Electronics, Cisco Systems, Siemens, S&P Global, ServiceNow, Deloitte, Vodafone, X Corp, Zscaler, FedEx, Volkswagen, Thales and London Stock Exchange Group. The incident occurred after cybercriminal group Team PCP compromised LiteLLM, and malicious versions were reportedly available through the Python software repository PyPI for only around 40 minutes, yet CloudSEK's analysis identified approximately 434,000 CI/CD pipelines potentially connected to the exposure. Potentially accessible information included cloud credentials, source-code access, server keys, software-development secrets, AI API keys and other credentials that could give attackers access to critical business systems, and CloudSEK stresses that appearing in the dataset does not automatically mean an organisation was successfully breached but should be investigated urgently. CloudSEK has released a free exposure-checking tool to help organisations determine whether credentials or infrastructure associated with them appear in the identified dataset.
EVs dominate China’s car market with 65.1% of July sales
New energy vehicles accounted for 65.1% of new passenger cars sold in China in July, up from 54% a year ago, according to China Passenger Car Association data. Geely’s Xingyuan electric hatchback was the bestseller among the 10 most popular car models in the six months through July, with nearly 197,500 units sold at a price just under 100,000 yuan. Tesla’s Model Y ranked second with more than 180,000 electric SUVs sold, priced between 263,500 yuan and 313,500 yuan. BYD’s most popular model, the Yuan UP SUV, placed fifth with nearly 97,700 units sold, while the company reported a more than 10% drop in passenger car sales in the first half of the year. Volkswagen was the only traditional foreign automaker in the top 10, with its gasoline-powered Lavida in ninth place.
QuantumScape Pushes Battery Commercialization Target to 2029
QuantumScape has delayed the commercial readiness of its solid-state automotive batteries to 2029, abandoning its earlier 2024 target. The company disclosed the new timeline in its second-quarter report on July 22, stating that its batteries will not be ready for commercial use until 2029, which means investors should disregard Wall Street estimates projecting revenue in 2027 and 2028. QuantumScape, which went public via a SPAC merger in November 2020, has yet to generate meaningful revenue and now plans to license its technology to partners like Volkswagen's PowerCo subsidiary rather than manufacture batteries itself. The company's stock, which opened at $24.80 on its first trading day, currently trades around $6.
Mercedes sold just 1,153 cars in China in first half of 2026
Mercedes-Benz Group AG sold only 1,153 units in China in the first half of 2026, a fraction of the more than 80,000 similarly priced SU7 sedans that Xiaomi Corp. delivered in the same period. The performance echoes the challenges faced by BMW AG, Volkswagen AG, and Porsche AG in China, where all reported second-quarter sales declines of at least 30%, worse than the overall market's drop.
Volkswagen plans US model overhaul and names Marco Schubert as new chief
Volkswagen is preparing a significant shake-up of its US operations, including a review of its entire model range and the appointment of Marco Schubert as head of its American business, according to a report by German business newspaper Handelsblatt. Schubert, currently Audi's outgoing sales chief, will succeed Kjell Gruner, who is departing the company. Thomas Schäfer, head of the VW brand, has identified pickups and large SUVs as expansion areas, targeting a launch for the brand's first pickup truck before 2030, with the vehicle to be built in the US. No decision has been made on whether VW will develop the pickup independently, with suppliers, or through a partnership, with Ford seen as the leading candidate for collaboration. The move follows a call last week by Porsche SE, VW's majority shareholder, for swift action to strengthen the group's competitive position after booking billions of euros in impairments on its stake.
China's auto market sees sales struggles for Japanese, Western, and Chinese players amid weak consumption and EV hyper-competition
Japanese, Western, and Chinese automakers are facing sales headwinds in China's auto market. In the first half of 2026, Honda's China sales fell 34.6 percent year on year, Toyota Motor dropped 17.1 percent, and Nissan Motor declined 15 percent, with Japanese brands posting double-digit decreases. European players Volkswagen, Mercedes, and BMW saw drops of 20 to 30 percent, while US automaker General Motors slipped 6 percent. Chinese manufacturers also saw domestic sales fall below the previous year for the first time in two years, with EV leader BYD down 16 percent and Li Auto down 5 percent. A rapid expansion of production capacity for new energy vehicles, including EVs, has led to oversupply, pushing factory utilization rates well below the 80 percent breakeven level. The strain of overproduction is spilling over into exports, with so-called zero-kilometer used cars, where new vehicles are shipped overseas as used cars, now accounting for over 90 percent of used car exports, prompting authorities to question BYD and others. NIO CEO William Li expressed a sense of crisis, saying China's auto industry has entered its most brutal phase, as the state-led push to nurture the EV industry reaches a crossroads.
Volkswagen's controlling shareholder family pressures management: 'Now is the time to act'
Porsche SE, the investment company of the Porsche and Piëch families that are the controlling shareholders of German auto giant Volkswagen, has sent a clear message to management demanding accelerated cost cuts and a stronger response to Chinese competitors. Porsche SE Chairman Hans Dieter Pötsch said, 'The Volkswagen Group stands at a historic crossroads,' warning that delays in decision-making will only magnify the problems. The company's finance chief, Johannes Lattwein, called for reducing overcapacity, significant cost cuts, and strengthening decision-making. Porsche SE is the largest shareholder of Volkswagen, holding a 31.9 percent stake.
Toyota, Volkswagen, and Mazda sales plunge in Australia as EVs and Chinese brands surge
Toyota, Volkswagen, and Mazda are posting sharp sales declines in Australia as electric vehicles and lower-cost Chinese models rapidly reshape the market. Toyota is down 21%, Mazda 17%, Mitsubishi 25.7%, and Volkswagen's 2025 sales have fallen 21% after a 17% drop in 2024, according to a report cited by The Electric Viking. Plug-in vehicles grew from 16% of the market in January to 36% by June 2026 when plug-in hybrids are included, and Chinese automakers now represent seven of Australia's 20 best-selling brands. The upheaval has already seen Fiat exit the Australian market after Citroen and Infiniti, and Peter Jones, chief executive of the Victorian Automobile Chamber of Commerce, warned that brands with under 5% market share are especially at risk. The Australian government has responded to fuel-security concerns by arranging additional petrol and diesel supplies and temporarily cutting the fuel excise, but the overall direction still appears to favor electrification.
Volkswagen in advanced talks with JSW Group over India operations
Volkswagen is in advanced discussions with JSW Group about a potential partnership or sale of its India operations. The talks focus on transferring control of Volkswagen's India unit to JSW while retaining access to manufacturing assets. No finalized agreement has been reached and negotiations remain ongoing. If completed, the deal could mark Volkswagen's largest shift in India since 2007 and reshape its capital commitment in the country.
Rivian beats Q2 revenue and earnings estimates on strong R2 launch
Rivian reported second-quarter 2026 revenue of $1.66 billion, beating analyst estimates of $1.54 billion and growing 27.2% year on year. Its adjusted loss per share of $0.47 also topped expectations of a $0.62 loss. The company attributed the performance to initial deliveries of the new R2 vehicle, which generated over 57,000 demo drives and higher-than-expected order conversions for the premium Launch Edition. Management warned that near-term gross margins may be pressured by production complexities but expects improvement as the R2 ramp scales, with a second shift planned at the Normal plant next quarter. Rivian also raised $1.3 billion in a follow-on equity offering and secured additional investments from Volkswagen Group and Uber to fund growth initiatives.
Toyota Retains Global Auto Sales Crown for First Half, Extending Streak to Seventh Year
Toyota Motor Corporation posted global vehicle sales of 5.39 million units in the first half of 2026, outpacing Volkswagen's roughly 4.13 million units to hold the top spot for a seventh consecutive year, even as the Toyota group's total sales fell 2.8 percent from the same period a year earlier. The decline, the first in two years, was driven by sluggish demand in China and the impact of higher oil prices amid tensions in the Middle East. Overseas sales dropped 4.5 percent to 4.30 million units, while domestic sales rose 4.4 percent to 1.10 million units, supported by the new bZ4X electric vehicle. Global electrified vehicle sales climbed 9.1 percent to 2.71 million units, with all-electric vehicles surging roughly 2.4 times to 193,172 units, both setting first-half records. By region, sales in China fell 17.1 percent to 694,670 units, the Middle East dropped 21.6 percent to 218,855 units, and North America edged up 0.9 percent to 1.45 million units.
Luxury brands and automakers signal consumer weakness from China
European luxury brands and automakers are signaling diverging fortunes amid consumer weakness in China. BMW, Audi, Volkswagen, and Porsche are struggling as Chinese consumers opt for cheaper, better domestic alternatives, while heritage luxury names like LVMH and Kering are holding up better. Ferrari and Rolls-Royce have seen China sales fall but not as sharply as mass-premium auto brands. Hermez said price hikes in 2027 are going to be smaller than this year, which weighed on its shares, while Kering's 1% second-quarter revenue rise was enough to boost its stock.
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