Latest news with #PorscheSE
The Herald
19-05-2025
- Automotive
- The Herald
Shareholders demand VW reforms its ‘highly problematic' governance
Volkswagen's shareholders renewed their criticism of the carmaker'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 Volkswagen and Porsche AG, a contentious issue since Porsche's listing as a separate company in September 2022. "Mr Blume, again we make the urgent appeal: give up one of your board positions," said Ingo Speich of Deka Investment, stating 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 (R2,842) to €105.6 (R2,138), 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 US to fierce competition in China and high costs in Europe. 'Blatant deficiencies' 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 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. However, four investors argued that a lack of expertise on the board in key competencies such as electrification and digitalisation were holding back the carmaker. "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 the two 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 the blatant governance deficiencies before VW slides even deeper into crisis," said Janne Werning of Union Investment.
Reuters
16-05-2025
- Automotive
- Reuters
Volkswagen shareholders demand carmaker reform 'highly problematic' governance
BERLIN, May 16 (Reuters) - Volkswagen's ( 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.
Yahoo
05-04-2025
- Automotive
- Yahoo
German car giants shake off their Nazi past to prepare for war
Ferdinand Porsche became widely known as the brilliant engineer behind the bestselling Volkswagen Beetle and some of Porsche's first sports cars. But like his creations, the German industrialist had a dark side that is impossible to separate from his technical achievements. During the Second World War, Porsche's manufacturing business, along with many others, became a key pillar of the Third Reich – helping to sustain Adolf Hitler's war effort by churning out tens of thousands of militarised versions of what would later be renamed the Beetle. Porsche, who became the Fuhrer's friend and favourite inventor, also played key roles in tank design, turret production and even a brief spell working on the V2 rocket. It's a history that his descendants have tried to leave behind ever since, while Porsche SE – the powerful holding company of the modern Porsche family – has generally avoided military contracting since the 1960s. Yet amid a new era of European instability, the Porsche clan has revealed it is mulling a return to the defence business as part of a new 'core investment' plan. 'The focus is really on defence, because this is what it is all about,' said Lutz Meschke, head of investments at Porsche SE. He did not say how large the investment would be or where it would be targeted, suggesting that the company may also look at infrastructure. And if the company's existing core holdings are anything to go by, the investment shift could herald a significant move. Porsche SE's main investments today include a 32pc stake in Volkswagen Group (with more than 50pc voting rights) as well as a 12.5pc stake in luxury car maker Porsche AG (which is 75pc owned by VW). In addition to the flagship brands, the company's automotive empire also spans Audi, Bentley, Bugatti, Lamborghini, Škoda and SEAT. But these have been struggling of late. Meanwhile, a major German rearmament push has taken place, following Russia's invasion of Ukraine and Donald Trump's election as US president. Frederick Merz, Germany's incoming chancellor, secured support in March for an easing of his country's long-standing 'debt brake', turning the taps on for €500bn (£425bn) of infrastructure spending and for any defence spending above 1pc of GDP to be exempt from borrowing restrictions. It's no coincidence that Porsche's interest in new investments extends to both of these areas. But the company's new direction is also just a sign of the times: While carmakers such as VW – long the engine of the national economy – have been struggling, rearmament has seen huge sums of money flow into the likes of tank maker Rheinmetall. 'The mood in Germany is one where the excess capacity in the car sector, which has long been an issue, is now morphing into a debate about how car makers can switch into defence production,' says Sander Tordoir, the chief economist at the Centre for European Reform. 'What would Porsche do? It's not quite clear. But it's understandable that they're moving into that space. 'Their empire of investments today has some weak links, including Volkswagen. And of course, it's not good for Porsche to be hit with US tariffs either. 'So this makes sense for them, I think, because defence is where the dynamism in German industry will now be.' At the end of last year, executives at VW announced plans to slash 35,000 jobs as they battled sluggish consumer demand and brutal competition from China – sending the company's shares down by a third compared to a year ago. The picture is much rosier at Rheinmetall, however, with shares up 160pc in just the past six months alone. The company was valued at more than €60bn on Friday, having overtaken VW (currently valued at €49bn), just last month. For German defence companies, which have been the poorer industrial relations of car makers since the end of the Cold War, it is a major turnaround. And the reversal has prompted discussions about cannibalising German car making capacity to produce arms and ammunition instead – given the voracious demand for artillery shells in Ukraine and across the Continent where stockpiles have become depleted. Rheinmetall, which is Europe's biggest producer of ammunition, has already revealed plans to turn automotive component factories in Berlin and Neuss into 'hybrid' hubs that will become part of its weapons and munitions business. Last week, chief executive Armin Papperger also toured Volkswagen's under-utilised plant in Osnabrueck, north-west Germany, to discuss its potential for defence production. VW has also expressed openness to considering defence production but suggested it would wait to be approached by military partners. Moving the Porsche family's existing businesses into defence at this late stage is likely to be risky, however. More likely, Tordoir believes, is that the clan will seek to expand its holdings in defence start-ups and contractors through targeted investments. 'There's a certain degree of myopia and desperation', he says. 'There are plenty of other German defence companies, including quite a few that are doing well in the space and have an innovation lead on carmakers. 'So investing in German defence startups should be easier, in many ways, than re-rigging existing industrial sites.' But even then, there is no sure-fire guarantee of success – or that the boom in defence, traditionally a 'feast and famine' industry, will last. Still, 'to the Porsche family, with its empire of industrial investments, a short-term feast doesn't look too bad', notes Tordoir. Meanwhile, like BMW, Daimler and other German industrial titans, the family is no stranger to the military business – an entanglement that has become a source of shame today. Under Hitler's regime, Ferdinand Porsche was elevated from a respected designer to top German industrialist, with the Nazi leader bringing him in to develop the first Volkswagen ('people's car') for the populace – originally under a wholly state-owned enterprise. The car was not put into mass production before the Second World War erupted. But it had always been designed with possible military applications in mind, leading to a more rugged, wartime version known as the Kübelsitzwagen to be produced in the tens of thousands and even a boat-like, amphibious version known as the Schwimmwagen. Porsche was also brought in by Hitler to chair Germany's Panzer tank commission, suggest designs for the Tiger 1 tank – although his version was never adopted – support development of the Panzer 38 tank and eventually to produce the heavy tank destroyer known as the Ferdinand (later the Elefant). During the war, Porsche's business was one of those that used forced labourers from concentration camps, with some of these victims also allegedly being made to work as servants in his family's home. The tycoon has also been accused of taking advantage of the desperate situation of his Jewish former business partner Adolf Rosenberger, to transfer his shares at a cut-price during the 1930s when he fled Germany. After the war Porsche was imprisoned by the French as a war criminal but later released without being convicted. By this point, his son Ferry Porsche – himself a controversial figure – had taken over the running of the business, taking the company into sports car production. Both father and son had been members of the Nazi Party. But Ferry Porsche – still feted by Porsche as the man who saved the business – has also been accused of becoming an officer of Hitler's feared SS paramilitary organisation, and of hiring and promoting former SS officers within Porsche after the war. Dutch journalist David de Jong, author of the book Nazi Billionaires: The Dark History of Germany's Wealthiest Dynasties, has claimed the Porsche family 'laid the foundations for their wealth during the Third Reich' but have since engaged in 'brazen whitewashing'. For example, the website of the Ferry Porsche Foundation – chaired by Porsche patriarch Wolfgang Porsche – describes its namesake as 'a passionate entrepreneur who took his social responsibility seriously', according to an English translation. An official company history, produced to celebrate the brand's 75th anniversary, also started in 1948 – the year Porsche's 356 car entered production. The Porsche business has since agreed to undertake academic studies to examine the company's Nazi legacy and the history of Rosenberger, who claimed he had tried to return after the war but was refused. He died in 1967. On Friday, Porsche said the company was 'open to the past of its predecessor companies and sees engaging with its history as a permanent task'. 'Porsche AG is an open-minded company in which there is no room for discrimination, anti-Semitism and exclusion,' a spokesman said. They said there was 'no evidence' Ferry Porsche had willingly collaborated with the Nazi regime, or that he had associated with former SS officers after the war and made anti-Semitic remarks. His party memberships were 'not optional'. 'We believe it is important to take into account not only these memberships, but above all Ferry Porsche's concrete behaviour,' she said, pointing to his decision to work 'closely and trustingly' with American businessman Max Hoffman and former Porsche boss Peter Schutz, both of whom were Jewish by ancestry and fled Europe to escape the Nazis. 'Both cases show that origins and religion played no role for Ferry Porsche,' the spokesman added. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
05-04-2025
- Automotive
- Telegraph
German car giants shake off their Nazi past to prepare for war
Ferdinand Porsche became widely known as the brilliant engineer behind the bestselling Volkswagen Beetle and some of Porsche's first sports cars. But like his creations, the German industrialist had a dark side that is impossible to separate from his technical achievements. During the Second World War, Porsche's manufacturing business, along with many others, became a key pillar of the Third Reich – helping to sustain Adolf Hitler's war effort by churning out tens of thousands of militarised versions of what would later be renamed the Beetle. Porsche, who became the Fuhrer's friend and favourite inventor, also played key roles in tank design, turret production and even a brief spell working on the V2 rocket. It's a history that his descendants have tried to leave behind ever since, while Porsche SE – the powerful holding company of the modern Porsche family – has generally avoided military contracting since the 1960s. Yet amid a new era of European instability, the Porsche clan has revealed it is mulling a return to the defence business as part of a new 'core investment' plan. 'The focus is really on defence, because this is what it is all about,' said Lutz Meschke, head of investments at Porsche SE. He did not say how large the investment would be or where it would be targeted, suggesting that the company may also look at infrastructure. And if the company's existing core holdings are anything to go by, the investment shift could herald a significant move. Porsche SE's main investments today include a 32pc stake in Volkswagen Group (with more than 50pc voting rights) as well as a 12.5pc stake in luxury car maker Porsche AG (which is 75pc owned by VW). In addition to the flagship brands, the company's automotive empire also spans Audi, Bentley, Bugatti, Lamborghini, Škoda and SEAT. But these have been struggling of late. Meanwhile, a major German rearmament push has taken place, following Russia's invasion of Ukraine and Donald Trump's election as US president. Frederick Merz, Germany's incoming chancellor, secured support in March for an easing of his country's long-standing 'debt brake', turning the taps on for €500bn (£425bn) of infrastructure spending and for any defence spending above 1pc of GDP to be exempt from borrowing restrictions. It's no coincidence that Porsche's interest in new investments extends to both of these areas. But the company's new direction is also just a sign of the times: While carmakers such as VW – long the engine of the national economy – have been struggling, rearmament has seen huge sums of money flow into the likes of tank maker Rheinmetall. 'The mood in Germany is one where the excess capacity in the car sector, which has long been an issue, is now morphing into a debate about how car makers can switch into defence production,' says Sander Tordoir, the chief economist at the Centre for European Reform. 'What would Porsche do? It's not quite clear. But it's understandable that they're moving into that space. 'Their empire of investments today has some weak links, including Volkswagen. And of course, it's not good for Porsche to be hit with US tariffs either. 'So this makes sense for them, I think, because defence is where the dynamism in German industry will now be.' At the end of last year, executives at VW announced plans to slash 35,000 jobs as they battled sluggish consumer demand and brutal competition from China – sending the company's shares down by a third compared to a year ago. The picture is much rosier at Rheinmetall, however, with shares up 160pc in just the past six months alone. The company was valued at more than €60bn on Friday, having overtaken VW (currently valued at €49bn), just last month. For German defence companies, which have been the poorer industrial relations of car makers since the end of the Cold War, it is a major turnaround. And the reversal has prompted discussions about cannibalising German car making capacity to produce arms and ammunition instead – given the voracious demand for artillery shells in Ukraine and across the Continent where stockpiles have become depleted. Rheinmetall, which is Europe's biggest producer of ammunition, has already revealed plans to turn automotive component factories in Berlin and Neuss into 'hybrid' hubs that will become part of its weapons and munitions business. Last week, chief executive Armin Papperger also toured Volkswagen's under-utilised plant in Osnabrueck, north-west Germany, to discuss its potential for defence production. VW has also expressed openness to considering defence production but suggested it would wait to be approached by military partners. Moving the Porsche family's existing businesses into defence at this late stage is likely to be risky, however. More likely, Tordoir believes, is that the clan will seek to expand its holdings in defence start-ups and contractors through targeted investments. 'There's a certain degree of myopia and desperation', he says. 'There are plenty of other German defence companies, including quite a few that are doing well in the space and have an innovation lead on carmakers. 'So investing in German defence startups should be easier, in many ways, than re-rigging existing industrial sites.' But even then, there is no sure-fire guarantee of success – or that the boom in defence, traditionally a 'feast and famine' industry, will last. Still, 'to the Porsche family, with its empire of industrial investments, a short-term feast doesn't look too bad', notes Tordoir. Meanwhile, like BMW, Daimler and other German industrial titans, the family is no stranger to the military business – an entanglement that has become a source of shame today. Under Hitler's regime, Ferdinand Porsche was elevated from a respected designer to top German industrialist, with the Nazi leader bringing him in to develop the first Volkswagen ('people's car') for the populace – originally under a wholly state-owned enterprise. The car was not put into mass production before the Second World War erupted. But it had always been designed with possible military applications in mind, leading to a more rugged, wartime version known as the Kübelsitzwagen to be produced in the tens of thousands and even a boat-like, amphibious version known as the Schwimmwagen. Porsche was also brought in by Hitler to chair Germany's Panzer tank commission, suggest designs for the Tiger 1 tank – although his version was never adopted – support development of the Panzer 38 tank and eventually to produce the heavy tank destroyer known as the Ferdinand (later the Elefant). During the war, Porsche's business was one of those that used forced labourers from concentration camps, with some of these victims also allegedly being made to work as servants in his family's home. The tycoon has also been accused of taking advantage of the desperate situation of his Jewish former business partner Adolf Rosenberger, to transfer his shares at a cut-price during the 1930s when he fled Germany. After the war Porsche was imprisoned by the French as a war criminal but later released without being convicted. By this point, his son Ferry Porsche – himself a controversial figure – had taken over the running of the business, taking the company into sports car production. Both father and son had been members of the Nazi Party. But Ferry Porsche – still feted by Porsche as the man who saved the business – has also been accused of becoming an officer of Hitler's feared SS paramilitary organisation, and of hiring and promoting former SS officers within Porsche after the war. Dutch journalist David de Jong, author of the book Nazi Billionaires: The Dark History of Germany's Wealthiest Dynasties, has claimed the Porsche family 'laid the foundations for their wealth during the Third Reich' but have since engaged in 'brazen whitewashing'. For example, the website of the Ferry Porsche Foundation – chaired by Porsche patriarch Wolfgang Porsche – describes its namesake as 'a passionate entrepreneur who took his social responsibility seriously', according to an English translation. An official company history, produced to celebrate the brand's 75th anniversary, also started in 1948 – the year Porsche's 356 car entered production. The Porsche business has since agreed to undertake academic studies to examine the company's Nazi legacy and the history of Rosenberger, who claimed he had tried to return after the war but was refused. He died in 1967. On Friday, Porsche said the company was 'open to the past of its predecessor companies and sees engaging with its history as a permanent task'. 'Porsche AG is an open-minded company in which there is no room for discrimination, anti-Semitism and exclusion,' a spokesman said. They said there was 'no evidence' Ferry Porsche had willingly collaborated with the Nazi regime, or that he had associated with former SS officers after the war and made anti-Semitic remarks. His party memberships were 'not optional'. 'We believe it is important to take into account not only these memberships, but above all Ferry Porsche's concrete behaviour,' she said, pointing to his decision to work 'closely and trustingly' with American businessman Max Hoffman and former Porsche boss Peter Schutz, both of whom were Jewish by ancestry and fled Europe to escape the Nazis. 'Both cases show that origins and religion played no role for Ferry Porsche,' the spokesman added.
Yahoo
17-03-2025
- Automotive
- Yahoo
Porsche, Piech Clans Mull Partial Sale of VW Shares, Bild Says
(Bloomberg) -- The billionaire Porsche and Piech family is exploring options to potentially reduce its voting stake in Volkswagen AG, according to a report by German tabloid Bild Zeitung. ICE Eyes Massive California Tent Facility Amid Space Constraints How Britain's Most Bike-Friendly New Town Got Built The Dark Prophet of Car-Clogged Cities Washington, DC, Region Braces for 'Devastating' Cuts from Congress Saving the Signature Sound of Washington, DC The family's main investment vehicle Porsche Automobil Holding SE is discussing lowering its voting stake to 50% or 45%, from currently just over 53%, according to the report, which cites unidentified people familiar with the discussions. There's no agreement within the Porsche and Piech family on a share sale so far and the decision would need 'consensus' within the billionaire clan, the newspaper said. 'There aren't currently any concrete considerations at Porsche SE about sales of VW shares, nor were there any in 2024,' a representative for the holding company said by email. 'There have also been no discussions with investors regarding any sale of VW shares.' Volkswagen shares are split between common stock that carries voting rights and the more widely traded preferred stock, which is listed in Germany's DAX blue-chip index and doesn't carry voting rights. Porsche SE expects an after-tax loss of about €20 billion ($21.8 billion) for fiscal 2024 due to deteriorations in its investment holdings, underscoring the deep strains afflicting some of Europe's top carmakers, it disclosed in a filing earlier this month. That was largely linked to a non-cash impairment of negative €19.9 billion on the carrying value of its investment in VW. Nvidia Looks Past DeepSeek and Tariffs for AI's Next Chapter How America Got Hooked on H Mart How Trump's 'No Tax on Tips' Could Backfire for the Working Class College Presidents on Trump, Tuition and Universities Under Pressure As China's Birth Rate Drops, Pampered Pets Reap the Benefits ©2025 Bloomberg L.P.
