Volkswagen preferred vs. common shares arbitrage

As we speak the preferred shares of Volkswagen is trading at a 20 % discount to the common shares. The shares have a equal claim to the company assets as the common shares and have tended to trade at a slight premium to the common shares. Is this the most obvious equity arbitrage out there, or am I missing something? Is the voting rights of the common shares worth a higher price during turbulent times?

In any case the shares are trading at a normalized trailing PE multiple of approximately 4.5x. The company still makes some of the best cars out there, and the brands will in my perception survive. I currently have a overweight position in my portfolio and expect the stock price to bounce back at some point. My exit point is when the preferred shares are priced equally to the common shares once again.

Disclosure: I am long Volkswagen AG

I wrote this article myself, and it expresses my own opinions. I am not receiving any compensation for it. I have no business relationship with any company whose stock is mentioned in this article.