Volkswagen preference shares closed Friday at 69.84 euros, down 2.5%, after a court in Braunschweig ordered one of the three defendants in the diesel fraud trial into custody, AD HOC NEWS reported, citing Tagesschau and dpa-AFX.

The detention order came after the second day of proceedings against the former Volkswagen manager, who has lodged an appeal against the decision. dpa-AFX identified news of the detention as the specific trigger for the day's selling pressure in the shares. The defendants are presumed innocent unless convicted.

The trial opened on 2 November and is the fourth major fraud trial arising from the diesel emissions scandal. The three defendants are accused of helping develop an illegal defeat device or failing to stop further development of the software, according to dpa reporting.

The wider market backdrop was also weak. Worries over artificial intelligence and semiconductor stocks set off a global wave of selling, with Reuters reporting a worldwide selloff, and the DAX dropped nearly 2% after the opening bell.

Broker views split ahead of the fall. Bernstein Research had reinitiated coverage of Volkswagen only on Thursday with a Market-Perform rating and an 80-euro price target, while Deutsche Bank Research cut its price target to 100 euros from 105 euros on 2 November while keeping its buy recommendation.

On 30 October, Volkswagen reported Brand Group Core operating profit of 4.33 billion euros for the first nine months of 2026, down from 4.72 billion euros a year earlier. The return on sales slipped to 4.1% from 4.4%, and the Volkswagen Passenger Cars brand alone recorded a margin of just 1.3%.

Labour costs are the next front. Volkswagen and IG Metall have set the start of wage negotiations for 24 November in Emden, with the company naming the reduction of labour costs as its goal.