Volkswagen’s controlling families weigh in on restructuring battle, call for swift action

The Volkswagen Group – which includes the VW mass-market business, premium brands Porsche and Audi, and luxury marque Lamborghini – is battling high costs, tariff woes and intensifying competition from China.

BERLIN – Volkswagen’s controlling families dialled up the pressure on the German auto group’s stakeholders on Aug 7, backing management’s push for a dramatic restructuring that could cost tens of thousands more jobs.

Speaking as Porsche SE, the investment vehicle of the Porsche/Piech auto dynasty and Volkswagen’s top shareholder, announced a drop in its adjusted post-tax earnings, its board chairman Hans Dieter Poetsch said the Volkswagen group “is at a historic crossroads”.

“For the sake of the company and its sustainable competitiveness, everyone must now step up and take responsibility,” Poetsch said.

“The longer decisions are delayed, the bigger the problems will become,” he added.

The comments drew an angry response from Germany’s top industrial union, which accused the families of placing dividends above workers.

Volkswagen chief executive Oliver Blume has pledged to drastically overhaul the group – which includes the VW mass-market business, premium brands Porsche and Audi, and luxury marque Lamborghini – as it battles high costs, tariff woes and intensifying competition from China.

Porsche SE finance chief Johannes Lattwein called on the group to reduce excess capacity, significantly cut costs and strengthen decision-making.

Having already overseen tens of thousands of job cuts, Blume’s latest restructuring plan threatens another 50,000 layoffs and the possible closure of four German plants.

The plan still needs the blessing of powerful labour representatives and the state of Lower Saxony, which has a 20 per cent blocking minority, setting the stage for tense talks in the second half of 2026.

Sources told Reuters that the labour side and Lower Saxony voted against Blume’s plan at the last supervisory board meeting in July. The next meeting is expected in early September.

Volkswagen declined to comment on the matter. A company source said Porsche SE’s position was understood as support for Blume’s restructuring course.