Porsche SE, Volkswagen's largest shareholder, is calling for immediate cost-cutting and operational changes to counter rising competition from Chinese automakers.
Key facts
- •Porsche SE owns approximately 31.9% of Volkswagen's equity.
- •Volkswagen is considering job cuts of up to 100,000 positions to address profit issues.
- •The company faces significant competition from Chinese EV makers including BYD, Geely, and SAIC.
- •Volkswagen's shares have fallen more than 27% year-to-date.
- •Management is prioritizing restructuring and profit over other considerations like labor and environmental factors.
Porsche SE, the holding company controlled by the Porsche and Piëch families, has urged Volkswagen to take immediate action to address declining competitiveness. As Volkswagen's largest shareholder, holding approximately 31.9% of equity, Porsche SE officials stated that the company faces a historic crossroads requiring rapid, business-focused decision-making to survive against international rivals.
By the numbers
Strategic Overhaul and Cost-Cutting
Hans Dieter Pötsch, chairman of the board of management at Porsche SE, stated that Volkswagen must prioritize economic and business necessities above all other considerations. Proposed measures include reducing excess capacity, streamlining decision-making processes, and significantly cutting costs. Dr. Johannes Lattwein, a board member for finance and IT, warned that failure to act could lead to a permanent loss of market standing.
Market Pressures and Job Reductions
Volkswagen is currently facing intense competition from Chinese electric vehicle brands such as BYD, Geely, and SAIC, which are gaining market share in China, Europe, Latin America, and Africa. To address lagging profits, the company is considering cutting up to 100,000 jobs, a figure double what was previously communicated. The firm is also exploring ways to improve plant productivity and capacity utilization.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Euronews Business.
