Volkswagen Q3 2026 slides: €8.7B charges mask stable operations

The European Commission approved Volkswagen's full takeover of Europcar, stating no competition concerns. Volkswagen, which already held a majority stake, plans to expand Europcar's services, including car-sharing and subscriptions. Europcar was previously part of Volkswagen and will now be solely controlled by the German automaker.

Volkswagen's brand chief proposes shifting 75% of European models to Chinese-developed software (CEA) to cut costs after a 5.822 billion euro Q3 2026 loss. The move would reduce R&D risks and costs but relies on external tech. Affected brands include Volkswagen, Škoda, SEAT, and CUPRA.

Volkswagen is recalling 610,297 vehicles in China, including 388,258 Audi Q3 crossovers, due to corroding steering gear mounting bolts. The recall covers vehicles produced between 2014 and 2026, with dealers replacing bolts for free. Affected models include the Q3, Teramont, Teramont X, Viloran, Q6, Touareg, Golf, and Talagon.

Volkswagen (VWAGY) is shifting its China strategy to focus on exports due to weak domestic demand and competition. The company expects China's auto market to shrink from 24M to 19M vehicles in 2026, with VW aiming to maintain an 11% market share. VW plans to use Chinese joint ventures to expand into Southeast Asia, Africa, and South America, leveraging locally developed technology for global exports.

Audi plans to build a $4 billion assembly plant in Georgia, creating 4,500 jobs. The plant will produce 200,000 SUVs annually, starting in the early 2030s. President Trump announced the investment, attributing it to his tariffs and policies. Audi's US sales have declined 16% this year.

Volkswagen Group is recalling 2.86 million vehicles, including Audi models, due to a potential steering issue. The recall affects various models built between 2013 and 2024. Separately, European governments are implementing subsidies and policy changes to mitigate the economic impact of high fuel prices, according to the OECD.