Dark clouds loomed above Volkswagen’s Zwickau plant in eastern Germany on July 9, 2026, as workers across the country held protests. Unions warned of a “major conflict” if the embattled German carmaker moves forward with a sweeping restructuring plan that could become the largest shake-up the global auto industry has ever seen.
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Volkswagen’s largest investor and its controlling family shareholders delivered their most direct signal yet to the company’s leadership on Friday, as the German auto giant considers what may become the most far-reaching overhaul in its 89-year history.
The Volkswagen Group, Europe’s biggest carmaker, has confirmed it is examining plans to cut as many as 100,000 jobs — double the figure previously disclosed. The potential reductions come as Volkswagen tries to reverse a sharp profit decline, absorb billions of euros in tariff-related costs and fend off growing pressure from fast-expanding Chinese electric vehicle and car brands.
“The Volkswagen Group is at a historic crossroads,” Hans Dieter Pötsch, chairman of the board of management of Porsche SE, said in a statement.
“The decisions that Volkswagen makes now will determine its future. For the sake of the company and its sustainable competitiveness, everyone must now step up and take responsibility.”
Pötsch cautioned that any further delay would only deepen Volkswagen’s challenges. “The focus must now be solely on what is necessary from a business and economic perspective. All other considerations must be secondary,” he added.
Johannes Lattwein, the Porsche SE board member responsible for finance and IT, said Volkswagen must move urgently to address excess capacity, make substantial cost reductions and improve the group’s ability to make decisions and carry them out effectively.
“As the majority holder of Volkswagen AG’s ordinary shares, Porsche SE therefore supports the group board of management and its proposals. Competitiveness is the goal,” Lattwein said.
“Competitiveness is the goal. Every option must be considered in pursuing it. Otherwise, Volkswagen risks permanently losing ground to its international competitors,” he added.
A spokesperson at Volkswagen was not immediately available to respond when contacted by CNBC.
The Porsche and Piëch families control Volkswagen through their holding company, Porsche SE, which is the single largest shareholder of Volkswagen. It owns 31.9% of Volkswagen’s equity and 53.3% of its voting rights.
The statements come as Porsche SE reported adjusted half-year earnings after tax of 949 million euros ($1.1 billion), reflecting a 14.5% drop compared to the same period a year ago.
Shares of Volkswagen traded 1% lower on Friday morning. The stock is down nearly 28% year-to-date.
‘Various options’
Speaking to CNBC’s Annette Weisbach late last month, Volkswagen Chief Financial Officer Arno Antlitz said the auto industry has faced several challenges over the last 12 months, citing the heavy burden of tariff costs and the growing number of car exports from Beijing to Europe, among other examples.
Antlitz also addressed whether the company may look to outsource plant capacity to the defense industry to stave off possible plant closures.
“There are various options. And look, I’m not looking for job cuts per se and I’m not looking for plant closures per se,” Antlitz said on July 24.
He continued: “We want to reduce our cost structure and we want to increase productivity and increase the capacity utilization of our plants. And if there are better options then we will obviously look into that.”
