- VW’s board delayed approving new investments amid a funding shortfall.
- The automaker faces about €11 billion in financing gaps for 2026 plans.
- Without approval, VW can’t proceed with future models or factory upgrades.
VW is in the midst of a serious cash crunch. Faced with slowing sales, mounting costs, and the lingering sting of U.S. tariffs under the Trump administration, the automaker is tightening its belt.
The Volkswagen Group’s supervisory board has even delayed signing off on a multi-billion-euro investment plan, a lifeline the company badly needs to fund future models and modernize its vast manufacturing network.
Read: Trump Might Finally Force Audi’s Hand In America
The board had been expected to give the green light last week, but insiders say it’s holding back for now. Confidence is low, and plans involving nearly 100 factories worldwide are on hold until there’s more clarity on the company’s financial footing.
According to Bild, the investment package could take several months to be approved due to the carmaker’s uncertain financial situation. The investments are crucial for determining which models can be built and which plants are to be modernized. The current uncertainty won’t just impact VW but also its suppliers and cause development projects to stall.
How Deep Is the Gap?
VW reportedly faces a shortfall of around €11 billion ($12.7 billion) for its 2026 investment plans. Over the next five years, the brand has earmarked about €160 billion ($185 billion) to cover operations and product development, but that budget now looks tight.
The investment delays spell bad news for Audi, which could greatly benefit from having a factory in the United States. Its two key rivals, BMW and Mercedes-Benz, both have large manufacturing centers in the US, somewhat shielding them from the full brunt of the U.S. tariffs.
The VW Group has been considering an Audi factory in the US for quite some time, but it’ll need a lot of money to make it happen.
There’s talk the supervisory board might convene a special meeting in December if conditions improve, but sources caution the timeline could easily slip into next year. Until then, one of the world’s biggest carmakers remains stuck waiting for its own green light.
