{"id":71961,"date":"2026-09-18T12:38:18","date_gmt":"2026-09-18T16:38:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volkswagen-slashes-guidance-as-global-auto-trade-tensions-escalate\/71961\/"},"modified":"2026-09-18T12:38:18","modified_gmt":"2026-09-18T16:38:18","slug":"volkswagen-slashes-guidance-as-global-auto-trade-tensions-escalate","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volkswagen-slashes-guidance-as-global-auto-trade-tensions-escalate\/71961\/","title":{"rendered":"Volkswagen Slashes Guidance as Global Auto Trade Tensions Escalate"},"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-slashes-guidance-as-global-auto-trade-tensions-escalate\/71961\/#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-slashes-guidance-as-global-auto-trade-tensions-escalate\/71961\/#Volkswagen_Guidance_Cut_Triggers_Market_Sell-Off\" >Volkswagen Guidance Cut Triggers Market Sell-Off<\/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-slashes-guidance-as-global-auto-trade-tensions-escalate\/71961\/#California_Mandates_AI_%22Kill_Switch%22_via_Executive_Order\" >California Mandates AI &quot;Kill Switch&quot; via Executive Order<\/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-slashes-guidance-as-global-auto-trade-tensions-escalate\/71961\/#US_Automakers_Seek_Total_Ban_on_Chinese_Competition\" >U.S. Automakers Seek Total Ban on Chinese Competition<\/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-slashes-guidance-as-global-auto-trade-tensions-escalate\/71961\/#Regulatory_Pressure_Mounts_on_Amazon_and_Steel_Imports\" >Regulatory Pressure Mounts on Amazon and Steel Imports<\/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-slashes-guidance-as-global-auto-trade-tensions-escalate\/71961\/#Defense_and_M_A_Northrop_Grumman_and_CNP_Assurances\" >Defense and M&amp;A: Northrop Grumman and CNP Assurances<\/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\/VOW3\">VOW3<\/a>) shares plummeted 7.5%<\/strong> after the automaker slashed its 2026 operating margin guidance to <strong>1%<\/strong>, down from a previous estimate of <strong>4% to 5.5%<\/strong>.<\/li>\n<li><strong>California Governor Gavin Newsom<\/strong> issued an executive order to develop a mandatory <strong>AI &quot;kill switch&quot;<\/strong> for frontier models, accelerating independent safety oversight.<\/li>\n<li><strong>U.S. auto groups<\/strong> sent an urgent letter to the White House demanding a <strong>permanent ban<\/strong> on Chinese automakers entering the U.S. market, citing national security and unfair competition.<\/li>\n<li><strong>Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>)<\/strong> is facing renewed EU scrutiny over suspected <strong>price curbs<\/strong> on third-party sellers, following a landmark \u20ac59 million fine in Germany earlier this year.<\/li>\n<li><strong>The European Union<\/strong> is set to impose provisional <strong>safeguard measures<\/strong> on electrical steel imports starting September 25 to protect regional producers from cheap Asian competition.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Volkswagen_Guidance_Cut_Triggers_Market_Sell-Off\"><\/span>Volkswagen Guidance Cut Triggers Market Sell-Off<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Volkswagen (<a href=\"\/stock\/VOW3\">VOW3<\/a>) saw its stock price drop by <strong>7.5%<\/strong> on Friday following a significant downward revision of its financial outlook. The German automotive giant now expects an <strong>operating return on sales of just 1%<\/strong>, a sharp decline from its previous forecast of <strong>4% to 5.5%<\/strong>. Analysts had estimated a return of approximately <strong>4.29%<\/strong>, making the cut far deeper than market expectations.<\/p>\n<p>The company attributed the revision to &quot;extremely challenging&quot; market conditions, particularly a <strong>bruising price war in China<\/strong> and a faster-than-anticipated shift in consumer demand toward electric vehicles. This guidance cut follows reports that Volkswagen is considering up to <strong>100,000 job cuts<\/strong> and potential factory closures in Germany to restore profitability.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"California_Mandates_AI_%22Kill_Switch%22_via_Executive_Order\"><\/span>California Mandates AI &quot;Kill Switch&quot; via Executive Order<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Governor Gavin Newsom signed an executive order on Friday directing California agencies to develop safety recommendations for advanced AI, including a mandatory <strong>emergency &quot;kill switch.&quot;<\/strong> The order targets &quot;frontier models&quot;\u2014the most powerful AI systems\u2014and requires developers to maintain the capability to <strong>promptly enact a full shutdown<\/strong> if a model begins to exhibit catastrophic behaviors.<\/p>\n<p>This move marks a significant shift for Newsom, who vetoed a similar legislative effort (SB 1047) two years ago. The executive order also establishes a <strong>panel of world-leading experts<\/strong> to provide a regulatory guide within two months, aiming to fill what Newsom described as a &quot;federal vacuum&quot; in AI oversight.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"US_Automakers_Seek_Total_Ban_on_Chinese_Competition\"><\/span>U.S. Automakers Seek Total Ban on Chinese Competition<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A coalition of major U.S. auto trade groups, including the <strong>Alliance for Automotive Innovation<\/strong>, has formally petitioned President Trump to impose a <strong>permanent ban<\/strong> on Chinese automakers. The letter, released at 11 AM ET, urges the administration to block Chinese firms from <strong>selling, importing, or manufacturing<\/strong> vehicles within the United States.<\/p>\n<p>The industry&#39;s appeal comes amid concerns over President Trump&#39;s recent comments suggesting he might allow Chinese plants on U.S. soil if they employ American workers. Trade groups argue that allowing a &quot;foothold&quot; for subsidized Chinese brands like <strong>BYD<\/strong> would undermine the domestic manufacturing base and pose significant <strong>national security risks<\/strong> via connected vehicle technology.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Regulatory_Pressure_Mounts_on_Amazon_and_Steel_Imports\"><\/span>Regulatory Pressure Mounts on Amazon and Steel Imports<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>) is reportedly back in the crosshairs of European Union antitrust regulators. The investigation focuses on whether the e-commerce giant uses <strong>algorithmic price controls<\/strong> to curb the prices set by third-party sellers. This follows a June ruling by Germany\u2019s <strong>Bundeskartellamt<\/strong> that banned similar practices on Amazon.de and ordered a <strong>\u20ac59 million disgorgement<\/strong> of profits.<\/p>\n<p>Separately, the EU is moving to protect its strategic industrial supply chains by imposing <strong>provisional safeguards on electrical steel<\/strong>. Starting September 25, the EU will implement <strong>import quotas and minimum prices<\/strong> (ranging from \u20ac2,800 to \u20ac3,400 per ton) for grain-oriented electrical steel. The measures are intended to benefit regional producers like <strong>Thyssenkrupp<\/strong> and <strong>Stalprodukt SA<\/strong>, who have struggled against Asian imports sold at discounts of up to 25%.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Defense_and_M_A_Northrop_Grumman_and_CNP_Assurances\"><\/span>Defense and M&amp;A: Northrop Grumman and CNP Assurances<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the defense sector, Northrop Grumman (<a href=\"\/stock\/NOC\">NOC<\/a>) has been selected by the <strong>U.S. Space Force<\/strong> to deliver a new <strong>Space Domain Awareness (SDA) prototype satellite<\/strong>. The commercially derived system is designed to detect and track objects in increasingly crowded orbits, enhancing the military&#39;s ability to identify adversarial threats in real-time.<\/p>\n<p>In European financial markets, France&#39;s <strong>CNP Assurances<\/strong> is reportedly weighing a takeover offer for credit insurer <strong>Coface (<a href=\"\/stock\/COFA\">COFA<\/a>)<\/strong>. While no formal bid has been announced, the move would represent a significant consolidation in the European insurance sector, as CNP continues to expand its footprint under the umbrella of <strong>La Banque Postale<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Volkswagen (VOW3) shares plummeted 7.5% after the automaker slashed its 2026 operating margin guidance to 1%, down from 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