Pole Position "UBS European & US Autos Daily" Hummel

Research evidence excerpt

Pole Position "UBS European & US Autos Daily" Hummel

Global Research

8 July 2026ab

Pole Position Equities

Europe including UKUBS European & US Autos Daily

Automobiles

Patrick Hummel, CFA

Volkswagen reportedly weighs downsizing of executive board Analyst

Ahead of a supervisory board meeting on Thursday this week, Wirtschaftswoche reports patrick.hummel@ubs.com

that as part of its cost-cutting plan, VW plans to downsize its executive board by at least +41-44-239 52 54

two members. The main topic for the upcoming meeting will reportedly be a major cost- David Lesne

cutting round that envisages an incremental headcount reduction of up to 50,000 and Analyst

up to four plant closures in Germany (Manager Magazin had reported two weeks ago). david.lesne@ubs.com

Wirtschaftswoche writes that due to the far-reaching bundle of measures under +33-14-888 3034

discussion, no agreements between management, the state of Lower Saxony and labour Joseph Spak, CFA

representatives are expected on Thursday. VW has not commented on the claims in the Analyst

article, but has confirmed, in response to the Manager Magazin article, that further cost joseph.spak@ubs.com

measures are being discussed. +1-212-713 3089

Juan Perez-Carrascosa

Our view: Analyst

While it could take several more weeks to negotiate any potential cost-cutting package juan-perez.carrascosa@ubs.com

+34-91-436 9025

with the state and labour representatives, we think VW will need to structurally lower its

German cost base against the backdrop of a growing Chinese OEM presence in Europe. Paul Gong

However, we note it would likely take years to see a P&L impact from the savings Analyst

reportedly being discussed. We think deteriorating pricing and growing competitive paul.gong@ubs.com

+852-2971 7868