{"id":71958,"date":"2026-09-18T11:38:13","date_gmt":"2026-09-18T15:38:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volkswagen-shares-plunge-7-5-as-automaker-slashes-2026-guidance\/71958\/"},"modified":"2026-09-18T11:38:13","modified_gmt":"2026-09-18T15:38:13","slug":"volkswagen-shares-plunge-7-5-as-automaker-slashes-2026-guidance","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volkswagen-shares-plunge-7-5-as-automaker-slashes-2026-guidance\/71958\/","title":{"rendered":"Volkswagen Shares Plunge 7.5% as Automaker Slashes 2026 Guidance"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volkswagen-shares-plunge-7-5-as-automaker-slashes-2026-guidance\/71958\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volkswagen-shares-plunge-7-5-as-automaker-slashes-2026-guidance\/71958\/#Volkswagen_Resets_Targets_Amid_Market_Turmoil\" >Volkswagen Resets Targets Amid Market Turmoil<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volkswagen-shares-plunge-7-5-as-automaker-slashes-2026-guidance\/71958\/#California_Mandates_AI_%22Kill_Switch%22\" >California Mandates AI &quot;Kill Switch&quot;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volkswagen-shares-plunge-7-5-as-automaker-slashes-2026-guidance\/71958\/#Asset_Management_and_M_A_Activity\" >Asset Management and M&amp;A Activity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volkswagen-shares-plunge-7-5-as-automaker-slashes-2026-guidance\/71958\/#Geopolitical_Tensions_and_Trade_Barriers\" >Geopolitical Tensions and Trade Barriers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volkswagen-shares-plunge-7-5-as-automaker-slashes-2026-guidance\/71958\/#Defense_and_Tech_Developments\" >Defense and Tech Developments<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Volkswagen (<a href=\"\/stock\/VOWG\">VOWG<\/a>) stock fell 7.5%<\/strong> after the company slashed its 2026 revenue forecast to a <strong>3% decline<\/strong>, down from previous expectations of modest growth.<\/li>\n<li><strong>California Governor Gavin Newsom<\/strong> signed an executive order mandating an <strong>AI &quot;kill switch&quot;<\/strong> for new frontier models to mitigate catastrophic risks.<\/li>\n<li><strong>Allspring Global Investments<\/strong> is reportedly exploring a sale that could value the asset manager at <strong>$4 billion<\/strong>, nearly double its 2021 acquisition price.<\/li>\n<li><strong>The European Union<\/strong> is set to impose provisional safeguard measures on <strong>electrical steel imports<\/strong> to protect domestic industry from global overcapacity.<\/li>\n<li><strong>US automakers and suppliers<\/strong> issued a formal letter to the White House seeking a <strong>permanent ban on Chinese connected vehicles<\/strong> and hardware.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Volkswagen_Resets_Targets_Amid_Market_Turmoil\"><\/span>Volkswagen Resets Targets Amid Market Turmoil<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Volkswagen (<a href=\"\/stock\/VOWG\">VOWG<\/a>) and its parent entity Porsche Holding (<a href=\"\/stock\/PSHG_p\">PSHG_p<\/a>) significantly lowered their financial outlooks on Friday, citing an &quot;extremely challenging&quot; market environment. The German automotive giant now expects its <strong>operating return on sales to drop to approximately 1%<\/strong>, a sharp revision from the previous corridor of <strong>4% to 5.5%<\/strong>.<\/p>\n<p>The downgrade is primarily driven by <strong>weak demand in China<\/strong>, rising restructuring costs, and the ongoing transition to electric vehicles. Analysts note that the thin 1% margin leaves the company with little buffer for further market volatility, potentially threatening its <strong>2027 dividend predictability<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"California_Mandates_AI_%22Kill_Switch%22\"><\/span>California Mandates AI &quot;Kill Switch&quot;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Governor Gavin Newsom has issued an executive order requiring developers of &quot;frontier&quot; AI models to include an <strong>emergency shutoff or &quot;kill switch.&quot;<\/strong> The order aims to address growing concerns over AI-driven cyberattacks and the potential for autonomous systems to cause large-scale infrastructure damage.<\/p>\n<p>The directive accelerates the implementation of <strong>independent third-party oversight<\/strong> and safety audits for AI companies operating in California. This move comes as industry leaders and researchers increasingly warn that fast-developing technology could surpass human control if left unregulated.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Asset_Management_and_M_A_Activity\"><\/span>Asset Management and M&amp;A Activity<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Allspring Global Investments, the former asset management arm of Wells Fargo (<a href=\"\/stock\/WFC\">WFC<\/a>), is being readied for a sale by private equity owners GTCR and Reverence Capital. The firm, which manages approximately <strong>$642 billion in assets<\/strong>, could fetch a valuation of <strong>$4 billion<\/strong>, reflecting the rapid consolidation currently reshaping the fund management sector.<\/p>\n<p>In the insurance sector, France&#39;s <strong>CNP Assurances<\/strong> is reportedly considering a takeover offer for <strong>Coface<\/strong>. This potential deal follows a series of strategic maneuvers by CNP to expand its footprint in the global credit insurance market.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Tensions_and_Trade_Barriers\"><\/span>Geopolitical Tensions and Trade Barriers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>IRGC-Navy<\/strong> reportedly fired at least five cruise missiles at ships in the <strong>Strait of Hormuz<\/strong> on Friday, further escalating regional security concerns. The attack highlights the vulnerability of global energy markets, though Saudi Arabia\u2019s <strong>East-West Pipeline<\/strong> continues to serve as a critical buffer for crude exports.<\/p>\n<p>Simultaneously, the <strong>European Union<\/strong> is moving to protect its industrial base by imposing provisional safeguard measures on <strong>electrical steel<\/strong>. The measures, published in the EU Official Journal, aim to curb imports that have surged due to global overcapacity, particularly from Asian markets.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Defense_and_Tech_Developments\"><\/span>Defense and Tech Developments<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Northrop Grumman (<a href=\"\/stock\/NOC\">NOC<\/a>) announced a new contract to deliver a <strong>Space Domain Awareness prototype satellite<\/strong>, reinforcing its position in the growing military space sector. The prototype is expected to enhance the U.S. military&#39;s ability to track and identify objects in high-traffic orbital zones.<\/p>\n<p>In the retail sector, <strong>Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>)<\/strong> is reportedly facing renewed scrutiny from EU regulators over suspected <strong>price curbs on third-party sellers<\/strong>. The investigation focuses on whether the e-commerce giant uses its platform dominance to artificially suppress prices, potentially violating the bloc&#39;s Digital Markets Act.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Volkswagen (VOWG) stock fell 7.5% after the company slashed its 2026 revenue forecast to a 3% decline, down [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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