Porsche’s supervisory board has initiated discussions to potentially end the contracts of two board members ahead of schedule.
This move comes as the German luxury carmaker faces challenges in boosting its earnings and addressing sluggish sales, particularly in the Chinese market, reported Reuters.
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The two members are Lutz Meschke, the deputy chairman of the executive board and executive board member of IT and sales, and Detlev von Platen, the executive board member for sales and marketing.
Meschke served on Porsche’s executive board since 2009, overseeing finance and IT, and has been the deputy chair since 2015, according to Wall Street Journal (WSJ).
Von Platen has been responsible for sales and marketing on the executive board since 2015.
It was reported in October 2024 of Porsche’s plans to reduce costs due to a weakening economy and increased competition in China, which holds the title as the “world’s largest auto market”.
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By GlobalDataThe company,which is majority-owned by Volkswagen, also cited a slower-than-anticipated transition to electric vehicles as a contributing factor to its current challenges.
These factors have compelled the automaker to reassess its product lineup, and costs.
Last month, it was reported that Volkswagen was exploring the possibility of sharing its excess or idle production lines in Europe, particularly in Germany, with Chinese electric vehicle (EV) makers.
In Germany, Volkswagen agreed to scale back production capacity to avoid plant closures.
