Volkswagen finds itself in a delicate position. Slowing sales, rising costs and the continuing repercussions of U.S. import tariffs have forced the German giant into belt-tightening mode.
Notably, the Volkswagen Group's supervisory board has postponed the approval of a vast multi-billion-euro investment plan, a plan that is essential for financing future models and modernizing its imposing network of factories around the world.
Investments postponed and confidence shaken
The green light for the plan was expected last week, but board members are hesitating. According to sources close to the matter, confidence is low and financial uncertainty looms large. Decisions concerning nearly 100 factories worldwide are now on hold.
Bild also reports that approval could take several months, as the manufacturer's financial situation remains fragile. Without the new plan, Volkswagen cannot confirm which models will move forward to production or which facilities will receive the necessary upgrades, which risks slowing down development projects and affecting the entire supply chain.
A huge financial hole
For its 2026 plan, Volkswagen is reportedly facing a shortfall of about 11 billion euros, or nearly $12.7 billion USD. The company had planned to spend about 160 billion euros over the next five years to support operations and the development of new products. However, that budget now seems unrealizable.
The investment delays also affect Audi, which could greatly benefit from a factory in the United States. Its two main competitors, BMW and Mercedes-Benz, already have significant U.S. production sites, which better protects them from tariffs imposed on imported vehicles. Audi has long considered establishing an industrial presence in the United States, but the current situation makes the project even more difficult to bring to fruition.
An uncertain future
The supervisory board could call a special meeting in December if the situation improves, but several sources believe the discussions could easily extend into 2026. Until then, one of the world's largest automakers remains in limbo, waiting for its own authorization and unable to confirm its future industrial and commercial projects.