Neil Winton

Struggling iconic British luxury sports carmaker Aston Martin's recovery plan is teetering and the latest financial numbers show losses widening and debt burgeoning, while some bondholders are unhappy with the terms of a recent refinancing.

Chinese sedans and SUV brands, regardless of production location, edged out Japanese brands in Western Europe during the second quarter for the first time, while during the first six months local brands lost almost three percentage points of market share, led by the Volkswagen brand, according to Schmidt Automotive Research.

European auto sales will rise a bit in 2026. But Chinese sales will accelerate, and Germany, once the unassailable global auto industry leader, is in the crosshairs.

Stellantis shares are down more than 55%. Investors expect action to counter Chinese competition, EV missteps and too many brands. The Leapmotor EV deal is lauded though.

“Kicking the can down the road” is a metaphor that might have been designed to describe Volkswagen‘s 89-year corporate history. VW is facing another crisis which demands it reform itself and behave like a normal shareholder-owned company. Despite the noise, don't expect radical change.

It's no surprise that Chinese auto imports pose an existential threat to even Europe's most iconic brands. The trouble is, the threat is moving into a higher gear, while European Union actions to mitigate this disaster seem lost in its interminable political process.

Accelerating sales in Europe will please car dealers but might threaten automakers, as EV sales spurted in the first half of 2026 including an expanding Chinese element.

Volkswagen’s governance has been dominated for decades by workers rather than shareholders but pressure at home and abroad from China looks like finally changing that.

VW’s surprise restructuring agreement boosted the shares, closing Friday up 6.23%. Investors had expected a VW supervisory board fudge and were surprised by an agreement.

VW investors have lived for decades with governance which put shareholders in 2nd place. Will unions, under existential pressure, agree the radical transform plan?