18:45 17-06-2026

Volkswagen at a Crossroads: VW Group's Top Brass See the Company's Existence Under Threat

An anonymous survey of VW Group's leadership revealed deep concern over the company's future, with most respondents calling its very existence at risk.

Volkswagen has reached a point where solid EV sales no longer mask the main problem — the group needs to redefine how it will make money. An anonymous survey, commissioned by CEO Oliver Blume, revealed that anxiety inside the company runs far deeper than is visible from the outside.

According to Manager Magazin, Blume requested a situation assessment back in late 2025 from eight members of the management board, 14 members of the supervisory board and Porsche CEO Michael Leiters. The result was harsh: the board acknowledged a rift, and six out of nine respondents said the company’s very existence is “at risk”. The other three called the situation “tense”. Not a single calm “everything is under control” reply came back.

The reasons are clear. In China, Volkswagen is losing ground to BYD, Geely, Xiaomi, Xpeng and other domestic brands that refresh models faster, lean harder on software and price more aggressively. In the US, tariff risks have piled on top. In Europe, VW’s EVs sell better, but profitability remains a weak spot: batteries, platforms, software and factories burn cash faster than the market returns it.

A separate pain point is the complexity of the group itself. Volkswagen, Audi, Skoda, Seat/Cupra, Porsche, Bentley and the other brands have lived for years on a sprawling grid of platforms and models. Now that structure is becoming expensive. New cost measures could affect not only administrative spending but entire model platforms. In other words, what’s on the table isn’t individual trim levels but the very logic by which VW has sold cars in nearly every segment for decades.

Cariad also remains a symbol of the problem. The in-house software arm was meant to give the group control over the digital side of the car, but instead of an advantage it has delivered delays, cost overruns and the need to find partners — Xpeng in China and Rivian in the US. For a modern automaker this hurts: without strong software, an EV quickly turns into an expensive battery on wheels.

A new comprehensive transformation plan is to be shown to the supervisory board on July 9. The expectation is not slogans but cuts to complexity, faster decisions and tighter cost discipline. Volkswagen can no longer rely on scale, its dealer network and the old reputation of Golf, Passat and Tiguan alone.

For buyers, that means a narrower model lineup, fewer niche versions and possibly more standardised cars. For the market, it’s another signal: even the largest carmakers can no longer sell vehicles by the old rules. China has taught the industry to move faster, and Volkswagen is now trying to figure out how not to become too heavy for that speed.