Volkswagen’s controlling families weigh in on restructuring battle, call for swift action
The group has been battling high costs, tariff woes and intensifying competition from China.
Volkswagen's controlling families urged management to expedite restructuring efforts on August 7, fearing the company's sustainability. The families, represented by Porsche SE, the main shareholder, backed management's call for significant cuts, warning that the longer decisions are delayed, the worse the situation will become. Porsche SE's finance chief, Johannes Lattwein, demanded excess capacity reduction, major cost cuts, and stronger decision-making as the group faces high costs, tariff issues, and increasing competition from China.
The restructuring plan, which has already led to tens of thousands of job cuts, threatens another 50,000 layoffs and potential closures of four German plants. The plan requires approval from labor representatives and the state of Lower Saxony, which holds a 20% voting block. The labor union IG Metall pledged to defend workers and oppose plant closures, emphasizing that competitiveness will come from innovative products and a clear strategy.
Volkswagen declined to comment, but a source confirmed that Porsche SE's stance supported management's restructuring plan.
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