Volkswagen shareholders demand carmaker reform 'highly problematic' governance
BERLIN, May 16 (Reuters) - Volkswagen's (VOWG.DE), opens new tab shareholders renewed their criticism of the automaker's corporate governance on Friday, demanding greater board independence and expressing growing concern over the dominance of the German company's controlling families.
At the carmaker's virtual annual general meeting, several major investors took aim at CEO Oliver Blume's dual role as head of both Volkswagen and Porsche AG (P911_p.DE), opens new tab, a contentious issue since Porsche's listing as a separate company in September 2022.
"Mr Blume, once again we make the urgent appeal: give one of your board positions up," said Ingo Speich of Deka Investment, stating that conflicts of interest across the carmaker's governance structure were "highly problematic" and causing "grave damage to reputation and enormous financial losses."
Volkswagen's share price has dropped by nearly 25% in the past year from 140.40 euros to 105.6 euros, underperforming the European autos index and Germany's DAX, according to LSEG data.
The carmaker, which warned last month it would likely hit the bottom end of its annual profit margin forecast, is battling challenges in all its key markets, from steep tariffs in the United States to fierce competition in China and high costs in Europe.
The Porsche and Piech families effectively control Volkswagen through their holding firm Porsche SE, which holds most of the voting rights in the Wolfsburg-based carmaker.
Wolfgang Porsche, who leads the supervisory boards of both Porsche SE and sportscar maker Porsche AG, has previously dismissed the idea that poor governance is to blame for the carmaker's languishing share price, instead blaming weak performance and high costs.
Still, four investors argued that a lack of expertise on the board in key competencies like electrification or digitalisation were holding the carmaker back.
"The impression is becoming stronger that power, rather than the market, dominates at VW," said Hendrik Schmidt from asset manager DWS.
Blume and supervisory board chair Hans Dieter Poetsch defended the CEO's dual role on Friday, saying it benefited cost-cutting efforts underway at both companies. "It was clear from the beginning that [my dual role] was not intended to last forever," Blume said. "The dual role is a recipe for success."
Investors are not so sure.
"Instead of shrugging off shareholder criticism year after year, you should finally address and remedy these blatant governance deficiencies before VW slides even deeper into crisis," said Janne Werning of Union Investment.
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Reuters
23 minutes ago
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Focus: US importers turn to brokers to navigate Trump-era tariffs, at a cost
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25 minutes ago
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Winter fuel payment changes to unleash ‘chaos' on HMRC
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Buying a used car checklist: How Sun Motors takes the stress out of buying a used car
BUYING a user car isn't easy. Are you buying the right model? Is the mileage too high? Is the colour cool or not? Finally, how do you know you've got a good deal used car? 3 FIND YOUR NEXT USED VEHICLE HERE We can definitely help you with the last one. Sun Motors is the best place to buy a used car in the UK. You'll find thousands of fairly priced cars for sale, all from trusted dealers who've checked, tested, MOTed and manicured your car to motoring perfection. If you're in the market for a reliable runaround or simply want some tips on how what to look for when buying a new car, you're in luck. You don't need to be a master mechanic to use this guide. It's packed full of common sense advice for anyone who wants to learn more about buying a used car. This Sun Motors ultimate checklist will help you navigate what to look for to ensure you always make an intelligent and informed decision. (Just don't buy a brown car.) Buying a used car checklist Mileage Documents Safety features Damage and accident history Tyres Dents and scratches Fluid levels Interior Electricals Engine How Sun Motors takes the stress out of buying a used car Buying a used car via Sun Motors is fast, easy and – dare we say it – fun. You can search from a massive marketplace with the confidence that every car has been tested and checked to ensure it's ready for the road. When you find one you like, you can connect directly to the dealer. Here are some of the reasons why you should buy your next used car on Sun Motors: Ask AI: Use the intelligent AI function to ask essential questions about the vehicle such as "Is there any damage or accident history", "What is the mileage" and other checklist queries. Try it out, it's great! Connect with dealers: Get information and answers through your mobile. Dealers are instantly available over WhatsApp. Don't want to IM? Email addresses and phone numbers of all dealers are available. Check out the pictures! No grainy images here. You'll get to see a gallery of detailed photographs of the cars and vans you're interested in. This can help you make up your mind before a trip to the dealer or buying online. Fast finance decisions: No cash, no problem. You can apply for finance through the Sun Motors site and get an almost instant decision. There's no pressure to buy. You'll get a clear and honest breakdown of all costs so you don't borrow too much. 1. Mileage Mileage matters, but not as much as it used to. One of the first things to check is the car's mileage. A vehicle with high mileage might have more wear and tear, even if it looks great on the inside and out. The average car will do approximately 10,000 to 12,000 miles per year, so use that as a guide. High mileage used to be a big warning sign, but modern cars are built to go beyond 100k. Ask the dealer or seller how the mileage has been done. High mileage clocked up on long motorway journeys is less of a problem than stop-start city streets. 3 FIND YOUR NEXT USED VEHICLE HERE If a car has high mileage, you'll want to know it's been serviced regularly and preferably by a main dealer. Buying a high(er) mileage model is a risk and things could go wrong. Dealers should factor this into pricing, with high mileage models cheaper. If you're worried a car could be clocked (where the mileage has been tampered with) check old MOTs. This will give you a complete history of the car and its mileage. As with every financial transaction, if you're worried, just walk away. 2. Documents Before purchasing a used car, it's important to thoroughly inspect its documents to ensure you're buying a safe, road-legal and responsibly driven car. Start with the vehicle's logbook (V5C), MOT history and service records to ensure the Vehicle Identification Number (VIN) matches the one on the car. For added security, you can also conduct a vehicle history check or HPI check. This reveals crucial details such as outstanding finance, accident history and previous ownership. Free checks online will provide limited information, however, comprehensive checks for an additional fee will provide more insights. 3. Safety features You'll want your new used car to be safe to drive, right? Check the MOT history for any advisories. You can also check if the car has been recalled for free on the Government website. If you're planning on driving the car away, always do a visual check of essentials like seatbelts, searching for any signs of fraying, damage, or improper retraction. Properly functioning airbags are equally important. Check for the airbag warning light on the dashboard when you start the car. If it stays illuminated after starting the car, it could indicate a malfunction. Next, you can check things like the anti-lock braking system (ABS). The ABS light should briefly turn on when you start the engine but go off quickly. If it stays lit, the system may not function properly, compromising its performance during emergencies. Never compromise on safety when buying a second-hand car. Faulty safety systems not only put you and your passengers at risk but can also lead to expensive repairs later. 4. Damage/Accident history It's not unusual to find cars that have been involved in accidents returned to the road. What is crucial is that the dealer or sellers tell you. You can pay for a vehicle check through trusted providers like Autotrader. Dealers will have done these checks, so just ask them to confirm the car hasn't been in an accident. If you're buying privately, always ask the seller about the vehicle's accident or repair history, as it can reveal hidden issues. Don't take their word for it. Visually inspect the car and look closely for uneven paintwork, mismatched panels, or signs of recent bodywork repairs, which may indicate previous damage. These inconsistencies could affect the car's safety, performance, and resale value. If you're serious about safety, we recommend obtaining a professional inspection or a vehicle history report for extra peace of mind. A few hundred spent today could save you a lot more. 5. Tyres Tyres are critical to a car's safety and performance. They're also expensive to replace! Start by checking the tread depth. UK law requires a minimum tread depth of 1.6mm, but you'll want more than the minimum. If tyres are low, factor this into the cost. A set of new tyres for an average car can easily cost £400, with wheel alignment and mobile fitting adding to the cost. Uneven wear on the tyres could indicate alignment or suspension problems, which may require costly repairs. Examine the tyres for cracks, bulges, or any signs of damage that could lead to a blowout. Always ensure there is a usable spare tyre or a tyre repair kit included, as these can save you from being stranded in emergencies. The condition and quality of tyres are often overlooked by buyers but can add a significant cost if you need to replace them. Oh, and if you get caught driving with tyres below the minimum tread depth, you could get 3 points and a £2,500 fine for each tyre. (You do the maths.) 6. Dents and scratches While minor scratches and small scuffs are typical for used cars (and can often be buffed out by a professional repair shop), larger dents, rust spots, or significant damage can impact the value of any used car. Check over the car from front to back and look for any signs of damage and repair. Dented, damaged and bent panels are annoying and could point to more serious problems. The car may have been in a minor accident that wasn't reported or repaired, for example. Pay special attention to common rust-prone areas such as wheel arches and the edges of doors and windows. Rust can spread quickly and weaken the metal components of the vehicle, leading to expensive repairs. While patches of rust can often be cut out and repaired it's a costly job and do you really have the time or inclination to do it? Even if the car seems well-maintained and all up together, check for if the paint job is recent. Look at the lines of the car, check doors line up when you open and close them and look for obvious signs of filler being used. Lif the bonnet and look inside for any signs of damage and repair. Do the same in the boot. You'll need to lift the carpet up and potentially remove the spare, but no honest seller is going to mind. You're looking out for any signs of welding, damage and repairs that spell danger. 7. Fluid Levels The car's fluids – including oil, brake fluid and coolant – can give you some good clues about the health of the car. Start off with the most important: the engine oil. It should be clean and at the correct level. Dirty, sludgy oil can signal a problem. Also, check for a milky residue around the filler cap. This is a tell-tale sign of a worn head gasket. If you're worried, get the seller to start up the car and look out for a bluish exhaust gas. This suggests oil is entering the combustion chamber. (Bad and expensive to fix!) Checking the brake fluid is also a must. Low brake fluid levels may point to leaks or worn brake components. Examine the coolant for proper levels and clarity, cloudy or rusty coolant can signal overheating or potential radiator issues. Even if there are no problems with fluids, low fluid levels can indicate a person who doesn't care about their car. If that's you, show your current car some love and top it up! 8. Interior We've focused on the outside, but the interior of your car tells a story about how it's been driven, where and by whom. Inspect the seats and interior surfaces for tears, stains, or unusual smells. Persistent odours, such as smoke or mildew, can be difficult to remove and may require professional cleaning. Factor in the cost of a trip to a valet in your offer. Check for signs of excessive wear, especially on high-contact areas like the driver's seat and armrests. Damaged upholstery doesn't just look (and smell) bad, it's costly to repair or replace. On the other hand, a well-maintained interior indicates the car has been looked after throughout its history. 9. Electricals Modern cars are computers on wheels, whether you like it or not. When driving a modern motor, it's hard to figure out who's in control with all the lights, warning noises, start-up buttons and electric handbrakes. All that technology is cool, but if it fails, it's very, very costly. Begin by testing the basics, such as the headlights, brake lights, indicators and interior lighting. Faulty lights are illegal, unsafe and easy to fix, so get the seller to do it. Things like the electric windows are also worth a check, ensuring they open and close smoothly without strange noises or hesitation. Also, inspect the in-car entertainment, including radio, Bluetooth connectivity, and touchscreen navigation features, as these can be expensive to sort if they aren't in perfect working order. Check each power socket, too. It's little things like this that you won't notice until it's too late. On your drive, test the horn, central locking and heated seats or mirrors. It's vital to run the air conditioning and climate control systems. Re-gassing the system can be costly and more extensive repairs and replacements can run to thousands. 10. Engine We've saved the most important to last. It's easy to be over-awed when you lift the bonnet and wonder, just what am I looking at? We know you're not a mechanic, and you don't need to be. You're looking (and listening) for telltale signs that could spell danger. Start by checking for any visible leaks, particularly around the oil filter and radiator. Use a torch if you have one (or the function on your camera if you don't) to look for any oil or other fluid. You can also take a look under the car to spot any drips on the ground that could suggest fluid loss. If possible, ask the seller to start the engine when it's cold. When they do, head to the back of the car. We've already explained how excessive exhaust smoke, or a blue puff from the back, suggests oil is entering the combustion chamber. This isn't just a visual check. Close your eyes (optional, but it helps) and focus on the sound the engine makes. Can you hear any rattles, knocks or grinding? Odd noises, rattles, knocks and chattering could all indicate engine damage or worn components. Buying a used car: Our final piece of advice Trust your instincts. When buying a used car, you're the one with the power, so never feel under pressure to buy. If you're worried about the process of buying a new car, taking a friend or loved one with you can help (especially if they're a mechanic). For ultimate peace of mind, you can pay for a professional to perform a comprehensive vehicle check. You'll find these are offered by both the AA and RAC, as well as independent providers. If you don't want the hassle, buy from Sun Motors. Our dealers ensure that every car has been checked, tested, and is safe and ready for the road. Sometimes, life really is too short to have your head stuck in an engine bay, on your hands and knees checking the tyres or listening for a knock or rattle. Buying a used car? Check out Sun Motors and find your next vehicle today. Whether you're looking for automatic, manual or electric, use Sun Motors to decide on your next model.
