Volkswagen Stock (VWAGY) Powers Higher as Potentially AI-Proof Diesel Arm Everllence Attracts $9.44B Bids

FomoAnxiety · 2026-02-27T13:51:17+00:00

Volkswagen's shares rose as private equity firms placed bids valuing its diesel engine division, Everllence, at about $9.44 billion, exceeding earlier expectations. Major bidders include Brookfield, CVC, and Blackstone, reflecting a bullish market outlook despite recent economic challenges.

FomoAnxiety

2026-02-27 13:51:17

Abstract generation in progress

Shares in German car giant Volkswagen VWAGY +1.10% ▲ drove higher today on reports that it has received a number of private equity bids valuing its potentially AI-Proof diesel engine division Everllence at around $9.44 billion.

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AI-Free Disruption

According to a _Reuters _article that value, including debt, is ahead of what analysts had previously been expecting for the unit, which spans a range of sectors including marine, oil and gas and energy & storage. It had been expected to be valued at around $7 billion.

It is understood that private equity firms including Brookfield BN -0.31% ▼ , CVC, Blackstone BX -0.23% ▼ are among those that have submitted bids for the unit that produces shipping engines and heat pumps, as these investors seek industrial businesses unlikely to face disruption from artificial intelligence.

That is off the back of the so-called ‘AI Scare Trade’ where software companies such as IBM IBM +1.88% ▲ and Salesforce CRM +4.03% ▲ have had their business models put in doubt in recent weeks because of innovations from the likes of AI darling Anthropic.

Bullish Dealmakers

It is also an indication of how bullish private equity firms are feeling as dealmaking returns in force following the uncertainty caused by President Trump’s tariff strategy and the impact of higher interest rates last year.

Japanese diesel engine manufacturer Yanmar has also reportedly submitted a bid, with Porsche SE, Volkswagen’s biggest shareholder, also said to be considering investing in Everllence.

Binding offers are expected in the next six weeks.

Volkswagen asked parties to submit bids in mid-February, according to the report. Volkswagen did not comment, but it has said previously that it was reviewing strategic options for the business.

The company has had a tough last few months as it also faced the impact of Trump’s tariffs and slumping demand in China as consumer confidence wanes. However, its share price has largely survived the rocky roads to climb 7% in the last 12 months.

Is VWAGY a Good Stock to Buy Now?

Given its lack of analyst coverage, let’s look at forward financial forecasts for the VWAGY stock. As can be seen below, it is looking like both earnings and sales growth are expected next quarter.

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