VW takes away the Porsche company car from top managers
VW-CEO Blume orders billion-dollar cost-cutting program for the group. This includes the upper management level. According to a report, Porsche will no longer be an option as a company car for top managers. The first lawsuits against the Porsche ban at the labor court are said to have already been filed.
The cost-saving measures of VW seem to be affecting the top management themselves. According to "Bild" newspaper, the company has issued a ban on Porsche for members of the so-called top management circle (TMK). A corresponding letter from personnel management reached over 200 affected employees in Wolfsburg at the beginning of the year, it is reported.
The top managers apparently cannot bear to part with their luxury cars: According to "Bild", there are already some lawsuits against the Porsche ban at the labor court in Braunschweig.
So far, VW's important managers have had access to two company cars. Members of the TMK could use them throughout the entire group, including at Porsche, the sports car brand. Due to cost reasons, this privilege is now being withdrawn. Only Porsche managers themselves and the VW board are reportedly allowed to request a Porsche as a company car.
Volkswagen CEO Oliver Blume has ordered a billion-dollar cost-cutting program for the group. Alone at the core brand Volkswagen, costs are expected to decrease by ten billion euros by 2026, while the return on investment is to rise to 6.5 percent. For the entire brand portfolio, the company has even set a target of eight percent.
Desolate Condition
A spokeswoman confirmed to "Bild" that the Porsche company car "in the context of cost optimization" will no longer be available. The company is reportedly aiming to save a high million-euro amount each year through the ban. In addition, it is said from business circles that VW managers have returned their expensive company cars in a desolate and depreciating condition, as "Bild" reports.
Delivery problems with some Audi engines and poor business with luxury cars caused Volkswagen to suffer a profit decline in the last quarter. The operating result was 4.6 billion euros, which is one fifth less than the previous year's level. After taxes, 3.7 billion euros remained in the coffers.
The fact that there are now complaints from top managers about the Porsche ban is reportedly incomprehensible to the corporate leadership, according to "Bild", quoting a board member: "Volkswagen top managers who really want to drive a Porsche can afford it privately."
The VW CEO's cost-cutting measures have extended to the executive level, with Oliver Blume ordering a ban on Porsche as a company car for top managers. This move is expected to save the company a significant sum annually.
Despite the company- wide savings program, some top management at Volkswagen are reportedly challenging the Porsche ban in court, citing their long-standing privilege to use these luxury cars.
