Porsche Automobil Holding SE

Volkswagen CEO Oliver Blume has told employees that roughly half of any further job reductions will need to fall on Germany, as the carmaker faces fixed costs 30% above rivals. Speaking at the Wolfsburg site, Blume said the frequently cited figure of 50,000 additional global job losses is a theoretical estimate, not an agreed target. The company is developing measures to cut annual European production capacity by 500,000 vehicles, streamline management, and trim its model range. Employee representatives warn that up to 140,000 roles could ultimately be affected, including about 50,000 cuts already agreed in Germany, another 50,000 suggested globally, and roughly 40,000 jobs at four German factories whose long-term status is unresolved. Blume said factory closures are the costliest option, and sites have up to a year to propose alternatives, with a settlement involving voluntary departures and reduced output possible. Works council leader Daniela Cavallo said confidence in leadership has been "damaged," while Porsche SE has pressed for faster action. VW needs at least €10bn in overhead reductions amid weaker Chinese sales and high German costs, with first-half operating profit down 11.6% to €5.93bn.

Porsche SE, the investment company of the Porsche and Piëch families that are the controlling shareholders of German auto giant Volkswagen, has sent a clear message to management demanding accelerated cost cuts and a stronger response to Chinese competitors. Porsche SE Chairman Hans Dieter Pötsch said, 'The Volkswagen Group stands at a historic crossroads,' warning that delays in decision-making will only magnify the problems. The company's finance chief, Johannes Lattwein, called for reducing overcapacity, significant cost cuts, and strengthening decision-making. Porsche SE is the largest shareholder of Volkswagen, holding a 31.9 percent stake.

Yahoo Finance Senior Autos Reporter Pras Subramanian test drove Chevrolet's new Corvette Grand Sport X hybrid, highlighting its new 6.7L V8 engine and a starting price of about $112,000. The Grand Sport X features a hybrid powertrain that provides torque fill during gear changes and improves handling in inclement weather, making it a versatile all-season sports car. Subramanian noted that the vehicle competes with the Porsche 911 Turbo, which costs roughly double at around $200,000 to $250,000, demonstrating GM's ability to deliver high performance at a lower price point.

European luxury brands and automakers are signaling diverging fortunes amid consumer weakness in China. BMW, Audi, Volkswagen, and Porsche are struggling as Chinese consumers opt for cheaper, better domestic alternatives, while heritage luxury names like LVMH and Kering are holding up better. Ferrari and Rolls-Royce have seen China sales fall but not as sharply as mass-premium auto brands. Hermez said price hikes in 2027 are going to be smaller than this year, which weighed on its shares, while Kering's 1% second-quarter revenue rise was enough to boost its stock.

German luxury carmaker Porsche will cut a total of 9,000 jobs by 2035, equivalent to about one in five employees. In an agreement announced on the 27th by management and employee representatives, they also agreed to cut an additional 5,000 positions while avoiding compulsory redundancies through natural attrition and voluntary retirement. This follows the 3,900 job cuts agreed in February 2025 and an additional 500 cuts due to subsidiary closures, reducing the workforce from around 42,600 at the end of 2024. Michael Reiters, who became CEO at the beginning of this year, has been tasked with a fundamental turnaround of the business amid a sharp sales decline in the once highly profitable Chinese market and a stalling electric vehicle strategy.

Volkswagen reported a 32.9 percent drop in second-quarter net profit to 1.54 billion euros, as the crisis-hit carmaker weighs up to 100,000 job cuts worldwide. The result was hit by a 500-million-euro charge for stopping US production of its electric ID.4 and negative mix effects from selling more lower-margin products. The group, which includes brands such as Lamborghini, Audi, Skoda and Porsche, also cut its full-year guidance and now expects sales to be flat or fall up to three percent. CEO Oliver Blume told staff that four plants could close and a further 50,000 jobs might have to go on top of the 50,000 departures already agreed across the group, which would be the largest restructuring in automotive history. The company is grappling with slimmer margins from electric cars, US tariffs and intense Chinese competition, with vehicle deliveries in China falling a further 31.6 percent in the first six months of the year.

Volkswagen CEO Oliver Blume warned employees on Monday that the automaker may need to eliminate another 50,000 jobs worldwide as it scrambles to close a 20% cost gap with rivals and avoid shutting German factories. The company has already agreed to roughly 50,000 reductions across the group, including at Audi and Porsche, and adding Blume's "theoretical deduction" would bring potential cuts to about 100,000 positions. Blume said Volkswagen preferred "intelligent solutions" to plant closures but could not yet identify competitive long-term uses for facilities in Emden, Hanover, Zwickau and Neckarsulm. The warning follows a sharp business downturn, with second-quarter global deliveries falling 8.6% and deliveries in China plunging 36.6%, while tariffs are costing Volkswagen about 5 billion euros in annual operating profit. Labor representatives blocked Blume's broader restructuring proposal in a 12-7 supervisory board vote last week.

Volkswagen CEO Oliver Blume has warned staff that a further 50,000 jobs could be axed, the first internal acknowledgement that total cuts may reach 100,000. The group has already agreed to 50,000 job losses, including at its Porsche and Audi divisions. In an internal memo, Blume said the company had identified a 20% cost disadvantage relative to peer firms, necessitating additional cuts, which translates into a theoretical deduction of another 50,000 positions globally. Labour representatives on the supervisory board rejected the proposals, which reportedly included job cuts and the possible closure of four plants. Blume indicated a preference for intelligent solutions over closures, pointing to defence sector work or the production of Chinese VW models in Europe as possible uses for underutilised sites.

Volkswagen has maintained its financial outlook for fiscal 2026 even as Chief Executive Oliver Blume warned that the automaker may ultimately need to eliminate around 50,000 more jobs globally to strengthen its competitive position, according to an internal memo reviewed by Reuters. The company continues to forecast sales revenue growth of 0 percent to 3 percent from 321.9 billion euros in 2025, and expects an operating profit margin of 4.0 percent to 5.5 percent, up from 2.8 percent last year. Volkswagen also projects an automotive investment ratio of 11 percent to 12 percent, automotive reported net cash flow of 3 billion euros to 6 billion euros, and automotive net liquidity of 32 billion euros to 34 billion euros. Blume said the company faces a cost disadvantage of about 20 percent compared with competitors, and after previously agreeing to cut around 50,000 jobs across the group, including at Porsche and Audi, this points to a theoretical need for another 50,000 job reductions, though no final decision has been made. The automaker is restructuring amid higher tariff costs, fierce competition in China, and the need to improve efficiency at its German factories, and is considering alternatives to plant closures such as defense-related production and building Chinese Volkswagen models in Europe.

Dr. Ing. h.c. F. Porsche reported first half 2026 deliveries of 122,306 vehicles, a 16% decline from 146,391 a year earlier. The stock has softened recently, down 5.45% over the past 30 days, though it still shows a 10.26% gain over 90 days and a 5.64% total shareholder return over one year. Porsche trades at a price-to-earnings ratio of 131.4 times, well above an estimated fair P/E of 19 times and the global auto industry average of 14.4 times. A discounted cash flow model suggests a fair value of €42.73 per share, slightly below the last close of €45.13.

Volkswagen will axe one in two models from its vehicle range as part of a cost-cutting drive. The German car giant, which has about 150 different models across brands including Audi, Bentley, Lamborghini and Porsche, said halving the number of models would allow it to focus on its best-selling and most profitable vehicles. It did not specify which brands would be affected or when the changes would be made. The move follows a board meeting that failed to agree on job cuts of up to 100,000 roles, with chief executive Oliver Blume saying the company is making the Volkswagen Group faster, more robust and more competitive. Unions staged protests outside plants across Germany on Thursday, warning of stepped-up industrial action if the company presses ahead with more job cuts or factory closures.

Porsche's global sales for the first half of 2026 fell 16% year-on-year to 122,306 units, the lowest level since 2020. Sales declined across all regions, with a 13% drop in North America, its largest market, and a 32% plunge in China. The company cited the end of production for the 718 model, a pullback from last year's strong electric Macan sales, and the expiry of US tax incentives for electric and hybrid vehicles as the main reasons. In China in particular, demand for luxury cars is shrinking due to a property slump and intensifying competition from local manufacturers. Porsche is responding by reducing its dealership network and offering locally tailored software. The company expects its China sales to decline for a fifth consecutive year in full-year 2026.

Volkswagen plans to cut up to 100,000 jobs worldwide as part of a restructuring aimed at saving €11 billion by 2030. Chief Executive Oliver Blume is also considering spinning off the namesake VW brand and closing four German plants in Hanover, Zwickau, Emden, and Neckarsulm, which employ around 40,000 people and produce about 750,000 cars annually. The job cuts represent roughly a sixth of the company's global workforce of about 657,000, escalating from earlier plans for 50,000 reductions. The overhaul comes as VW faces intense competition from Chinese electric vehicles and weak demand for EVs, with Porsche delaying a new electric SUV launch. Blume is expected to present the plan to the supervisory board on July 9.

Porsche is in talks to cut jobs as part of a broader streamlining plan aimed at securing the German sportscar maker's long-term competitiveness. Chief Executive Michael Leiters said at the annual shareholder meeting that open discussions with employee representatives are underway, but he could not provide further details on the scale of job cuts. The company has already shed non-core assets, including stakes in Bugatti Rimac and Rimac Group, and is shutting down units such as battery-tech developer Cellforce Group and e-bike drive systems developer Porsche eBike Performance. Leiters is pursuing a value-over-volume strategy, investing in new gas-powered and hybrid models while delaying some all-electric vehicle rollouts and reducing model variants. Porsche confirmed its full-year guidance, expecting sales of 35 billion to 36 billion euros, an operating margin of 5.5% to 7.5%, and one-off restructuring costs of 800 million to 900 million euros.