Volkswagen has agreed to sell a 51 percent stake in its large-engine subsidiary Everllence to US private-equity firm Bain Capital, a transaction that will inject €7.4 billion into the Wolfsburg-based group. The former MAN Energy Solutions unit, which employs 16,000 people and generated revenue of roughly €4.9 billion, was valued at well over €8 billion in the bidding, with three offers exceeding €9 billion. VW will retain a 49 percent holding, betting on the unit’s growth in data-centre power, maritime transport and energy markets.

The sale is the most concrete step yet in VW’s effort to shed non-core assets and fund a costly shift to electric and digital vehicles. Chief executive Oliver Blume has said the old business model no longer works, and the group is simultaneously managing high investment demands and softening demand. German business circles note that the move follows similar divestments by Mercedes-Benz, ZF Friedrichshafen and Continental, as the country’s auto sector restructures. Italian financial commentators describe the cash infusion as a much-needed “oxygen boost” for the transformation.

Bain’s winning bid was the lowest of the three, but the investor offered to assume potential liability risks tied to overstated fuel-consumption figures on marine engines built under licence—a matter under investigation in Japan since 2024. A rival consortium included the Wallenberg family’s EQT, Qatar and Porsche SE, the holding company of VW’s controlling families. Because Porsche SE and Qatar were involved, six supervisory board members recused themselves from the vote, a step that German governance observers say again exposes the board’s lack of independent controllers. Bain has pledged to keep all five German sites open and to rule out compulsory redundancies until 2030.

The transaction remains subject to regulatory clearances and a mandatory consultation with French employee representatives; VW expects to close it by the end of 2026. The deal coincides with a broader wave of job cuts across the European auto industry. Renault announced a reorganisation of its French engineering division that will eliminate 800 positions by 2027, while VW itself is targeting 50,000 job reductions by 2030, with 28,000 already agreed through voluntary departures. The next milestone for the Everllence sale will be the completion of the French consultation process, after which antitrust and other approvals can proceed.