Volkswagen's top investor and controlling family shareholders have issued an urgent call for immediate action as the company confronts a significant profit slump and mounting competition from Chinese car brands [1]. Hans Dieter Pötsch, chairman of the board of management of Porsche SE, emphasized that 'the decisions that Volkswagen makes now will determine its future,' underscoring the critical juncture at which the company finds itself [1].
Volkswagen has confirmed plans to cut up to 100,000 jobs, which is twice as many as previously stated, in an effort to address billions of euros in tariff costs and to counteract the profit decline [1]. Johannes Lattwein, Porsche SE's board member responsible for finance and IT, stated that it is 'imperative' for Volkswagen to reduce excess capacity, significantly lower costs, and strengthen the group's decision-making and execution capabilities [1]. Lattwein further warned that without decisive action, Volkswagen risks permanently losing ground to international competitors [1].
The Porsche and Piëch families, who control Volkswagen through Porsche SE, reiterated their support for the group board of management and its proposals, stressing that 'competitiveness is the goal' and that 'every option must be considered' [1]. Porsche SE owns 31.9% of Volkswagen's equity and 53.3% of its voting rights [1].
Porsche SE reported adjusted half-year earnings after tax of 949 million euros ($1.1 billion), a 14.5% decrease compared to the same period a year ago [1]. Shares of Volkswagen traded 1% lower on Friday morning and are down nearly 28% year-to-date [1]. Volkswagen CFO Arno Antlitz recently cited the heavy burden of tariff costs and increased car exports from Beijing to Europe as major challenges facing the industry over the past 12 months [1].
CONCLUSION
Volkswagen's controlling families are demanding swift and decisive action to address profit declines and rising competition from Chinese automakers. With plans to cut up to 100,000 jobs and a sharp drop in earnings, the company faces significant pressure to overhaul its operations. The market has responded negatively, with Volkswagen shares down 28% year-to-date, highlighting investor concerns about the company's future competitiveness.