Porsche SE Demands Rapid Restructuring at Volkswagen After Losses
Major shareholder pushes for cost cuts and efficiency as the automaker faces poor results and global challenges.
Porsche Automobil Holding is pressuring Volkswagen to implement rapid structural changes. The automaker's primary shareholder is seeking to cut costs and boost profitability after reporting losses in the first nine months of the year. These results were heavily impacted by write-downs on strategic investments.
Volkswagen currently faces external pressures such as fierce competition and falling demand in the Chinese market. The company is also dealing with tariffs imposed by the United States and high production costs in Germany. Third-quarter revenue fell 6.3% to 75.2 billion euros.
The automaker's restructuring plan includes cutting 100,000 jobs by 2030. The strategy involves halving the model portfolio and simplifying the organizational structure. The goal is to reduce administrative expenses and increase factory efficiency.
Hans Dieter Poetsch, CEO of Porsche SE, emphasized the need for immediate execution of these measures. He noted that the responsibility for delivering these results now rests with Volkswagen management. The holding company also plans to diversify its assets beyond the automotive sector by investing in defense.
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