Porsche Considers Ending Contracts Amidst Earnings Decline and China Sales Challenges
Porsche's supervisory board is reportedly weighing plans to terminate the contracts of finance chief Lutz Meschke and sales executive Detlev von Platen. The announcement follows the company's struggles with declining earnings and weakening sales in China.
The news, initially reported by German newspaper Bild, prompted Porsche to release a statement on Saturday. The company did not respond to Reuters' request for further comment outside of business hours.
Both executives have faced criticism for Porsche's poor financial performance and declining stock price. In October, the automaker announced cost-cutting measures to address economic challenges, intense competition in China, and a slower-than-anticipated transition to electric vehicles.
Porsche's shares, which performed well after their debut in September 2022, have plummeted 30% below the IPO price. The downturn reflects the company's struggles in the face of strong competition from Chinese automakers and a sluggish demand for electric vehicles.
Meanwhile, Porsche's parent company, Volkswagen, is undergoing a significant restructuring, with plans to eliminate over 35,000 jobs. This move aims to enhance its competitiveness against Chinese rivals and address weak demand in Europe.