Inside Volkswagen's 2026 Crisis: Everllence Sale, 100,000 Job Cuts, and What's Next for Ducati and Lamborghini

Volkswagen Group is navigating one of the most severe financial crises in its 89-year history as of mid-2026. The company faces intense pressure from weak electric vehicle demand, surging competition from Chinese automakers, and high structural costs, prompting a restructuring that CEO Oliver Blume has described as the deepest the global automotive industry has ever seen . But amid a flurry of dramatic headlines — 100,000 job cuts, four plant closures, a €7.4 billion asset sale, and potential divestitures of Italian luxury brands — it can be hard to separate confirmed moves from boardroom discussions and media speculation. This article fact-checks each claim using the latest available sources.

The One Confirmed Move: The Everllence Sale (€7.4 Billion)

The only fully confirmed restructuring action is the sale of a majority stake in Volkswagen's marine engine division, Everllence.

• On June 24, 2026, Volkswagen agreed to sell a 51% stake in Everllence to private equity firm Bain Capital .
• The deal generates proceeds of approximately €7.4 billion (about $8.4 billion) including debt .
• The unit was valued "clearly above" €9 billion in total by multiple bidders .
• Volkswagen will retain a 49% stake as a long-term minority shareholder, with completion targeted by the end of 2026, pending employee consultation in France and standard approvals .

Everllence has about 16,000 employees and generated €4.9 billion in revenue in its last fiscal year . The sale has already been credited with boosting Volkswagen's share price .

Reported but Unconfirmed: The Deepest Workforce Cuts in VW History

Multiple media reports claim Volkswagen is planning to cut up to 100,000 jobs worldwide — roughly 15% of its approximately 657,000-strong global workforce .

• This would double a previous target of ~50,000 job cuts announced just months earlier .
• Manager Magazin reported on June 26, 2026, that CEO Oliver Blume and CFO Arno Antlitz have already presented the restructuring plan to the management board, and that the supervisory board is set to discuss the proposals on July 9, 2026 .
• The same reports identify four German plants as candidates for closure: Hanover, Zwickau, Emden, and Audi's Neckarsulm plant . Those four sites employ more than 45,000 workers combined .

Important caveat: These reports come from news outlets citing unnamed internal sources. They are not yet confirmed by Volkswagen. In December 2024, VW reached an agreement with the IG Metall labor union that was supposed to avoid plant closures in Germany . The new, deeper plan would supersede that deal if approved . Volkswagen's works council and IG Metall have already said they will fight the plan if it moves forward .

The €1.5 Billion Bosch Self-Driving Partnership: Falling Apart

Germany's Bild newspaper reported on June 28, 2026, that Volkswagen plans to end its "Automated Driving Alliance" (ADA) with auto supplier Bosch .

• The partnership was launched in January 2022 through VW's software unit Cariad .
• Approximately €1.5 billion ($1.71 billion) had been invested in the project .
• Bild, citing internal sources, said the technology had not met expectations and was internally considered not competitive — especially on Level 2++ (hands-free city driving) .
• Bosch and Cariad issued a joint statement saying they do not comment on market rumors .

If confirmed, this would represent one of the most visible casualties of VW's cost-cutting drive: the write-off of a €1.5 billion investment in autonomous driving software .

The Biggest Question: Could Ducati and Lamborghini Be Sold?

Financial advisers are reportedly pushing Volkswagen to consider selling its most prized premium assets — Ducati (the Italian motorcycle brand) and Lamborghini (the supercar marque) — to raise additional cash for the transformation .

• The Financial Times reported that investment bankers are encouraging the sale following the Everllence deal, noting that restructuring costs could quickly swallow the proceeds from that divestment .
• Carscoops reported on July 1, 2026, that the financial pressure makes a sale scenario "increasingly realistic" and that both brands would attract enormous investor interest .
• Some analysts, however, believe Volkswagen is unlikely to sell its profitable premium brands despite the pressure .

Crucially, Volkswagen has not confirmed these discussions. In fact, the company has denied similar sale rumors multiple times in the past — in 2019 and 2020, when it explicitly stated it had no plans to sell or list Lamborghini . The Ducati and Lamborghini sale talk is, at this point, media speculation based on unnamed adviser recommendations, not confirmed board decisions.

What's Not Clear: Outside Investment in PowerCo, ADMT, and Scout

The original question also asked about outside investment in VW's battery division PowerCo, its ADMT (possibly Automated Driving and Mobility Technology) unit, and its Scout electric truck brand. The Financial Times has previously reported that VW is exploring external investors for PowerCo, but the searches conducted did not return sufficient current evidence to confirm the status of these discussions as of mid-2026. This area would require further verification.

Current Financial Snapshot

Despite the crisis narrative, Volkswagen's most recent financial reports show a mixed picture:

Metric	Value	Source
FY2025 sales revenue	€321.9 billion (stable vs. 2024)
Q1 2026 operating profit	€2.5 billion
Q1 2026 operating margin	3.3%
Overhead cost reduction (Q1 2026)	Nearly €1 billion
Net cash flow (Q1 2026)	€2 billion
2026 revenue forecast	0% to +3%

Operating profit in its "Progressive" brand group (Audi, Bentley, Lamborghini, Ducati) fell 13.6% in FY2025 due to high EV ramp-up costs and Audi's internal restructuring . The company has set a target of reducing costs by 20% by 2028 .

Bottom Line

The Everllence sale to Bain Capital is the only fully confirmed divestiture. Everything else — the 100,000 job cuts, four German plant closures, the end of the Bosch self-driving partnership, and the potential sale of Ducati and Lamborghini — has been reported by credible media as under active internal discussion or pushed by advisers, but has not yet received final board approval. The July 9, 2026 supervisory board meeting is the next key date to watch for official decisions on the workforce and plant closure plans.