Main Volkswagen Shareholder Demands Decisive Cost Cuts

The main Volkswagen shareholder has warned that the concern is at a “historic crossroads.” The company needs to cut excess capacity and costs in order not to lose out to competition from Chinese automakers.

The Porsche and Piëch families, who control Volkswagen’s largest shareholder – the investment holding company Porsche SE, have called on the auto concern’s management to make immediate decisions to improve competitiveness.

“The Volkswagen Group is at a historic crossroads,” – stated Porsche SE Chairman of the Board Hans Dieter Pötsch.

According to him, the concern’s future depends on current decisions, and continued delay will only increase the scale of the problems. Shareholders called on Volkswagen to prioritize economic viability above all.

Porsche SE Board Member Johannes Lattwein stated the need to reduce excess production capacity, significantly lower costs, and accelerate decision making and execution. The holding is ready to consider all possible options, as otherwise Volkswagen risks lagging behind international competitors for a long time.

The warning came against the backdrop of worsening financial results at Porsche SE, which holds the majority of Volkswagen’s ordinary shares and a stake in carmaker Porsche AG.

The holding’s adjusted net profit for the first half of 2026 fell to 900 million euros from 1.1 billion euros a year earlier. Taking into account an accounting impairment of its investments, Porsche SE posted a net loss of 2.2 billion euros, while for the same period of 2025 it had a profit of 300 million euros.

The holding wrote down 3 billion euros of the value of its stake in Volkswagen and a further 200 million euros in Porsche AG. These are non-cash accounting losses that do not mean a direct outflow of such sums from the company’s accounts.

Volkswagen itself is also going through a difficult period. The concern has downgraded its annual forecast and now admits the possibility of a 3% decline in revenue. The company is under especially severe pressure in China, where its deliveries fell by 37% due to competition from local electric vehicle manufacturers.

To reduce costs, Volkswagen has already agreed to broad-based workforce reductions in Germany. At the same time, the concern could eliminate around 50,000 more jobs across various countries if it fails to reduce employee costs in other ways.

Porsche SE maintained its forecast for an adjusted net profit in 2026 within the range of 1.5 to 3.5 billion euros. The holding’s net debt at year-end is expected to be on the order of 4.7 to 5.2 billion euros.

Based on materials from: Porsche SE, Reuters