Volkswagen battles slumping shares with tech bets and employee bonuses

Volkswagen is facing financial pressure as its share price drops and exports to China decline sharply. The company has announced a €1,250 bonus for employees in May to boost morale. Meanwhile, it is pushing ahead with new technology, including a steering-wheel-free concept car and a revamped electric vehicle platform. Volkswagen's share price has fallen by nearly 19% this year, closing at €86.04 on Friday. The decline comes as German auto exports to China dropped to €13.6 billion—less than half the value recorded in 2022.

To cut costs and improve efficiency, the company is localising production in key markets. It has also introduced a strict cost-cutting programme while maintaining workforce support, including a €1,250 bonus for employees next month.

On the technology front, Volkswagen is testing the Gen.Urban concept vehicle in Wolfsburg. This autonomous prototype lacks a steering wheel and is being trialled in real urban traffic. The company's new zonal vehicle architecture (SDV) has also completed endurance testing, proving its reliability in critical functions like all-wheel drive and traction control. The system simplifies wiring and allows over-the-air updates, forming the backbone for future electric models in Western markets.

Looking ahead, Škoda will launch the Epiq, a compact electric SUV, in autumn 2026. Volkswagen has also partnered with Rivian, investing $5.8 billion in a joint venture announced last November. The collaboration aims to produce models using Rivian's software and zonal architecture, with the first vehicles expected in 2027. Volkswagen's financial challenges continue as exports shrink and share prices fall. However, the company is advancing its electric vehicle strategy with new platforms and partnerships. The upcoming Škoda Epiq and Rivian collaboration signal further expansion into electric mobility.