Volkswagen's majority shareholder Porsche Automobil Holding SE (Porsche SE) has called for prompt measures to strengthen the VW Group's competitive standing, as Porsche booked billions of euros in impairments tied to its investment.
“In view of the ongoing challenges, Porsche SE urges its core investments to rigorously implement far-reaching solutions to improve their competitiveness,” the group’s statement read.
Porsche SE posted a group result after tax of minus €2.21bn ($2.54bn) for the first half of 2026, against a positive €338m previously, after recording impairment losses of €3bn on its investment in Volkswagen AG and €200m on its investment in Porsche AG, the vehicle manufacturer and luxury brand.
Both investments are accounted for using the equity method.
The Stuttgart-based holding firm said the impairments did not involve cash outflows and arose from reductions in the carrying value of its two principal holdings.
Porsche SE owns 31.9% of Volkswagen's subscribed capital and 12.5% of that of Porsche AG.
"As an anchor shareholder, Porsche SE is actively supporting this [the implementation of far-reaching solutions] process and has clear expectations regarding profitability, capital efficiency and cost structures," the company added.
"Now that Porsche AG has negotiated a comprehensive future package, it is up to Volkswagen to make swift and resolute decisions.”
Volkswagen CEO Oliver Blume told staff last month that up to 50,000 further job cuts were possible.
The group, which has already agreed to 50,000 job losses,reported an operating profit of €5.93bn for H1 2026, down 11.6%.
Porsche AG has separately announced 5,000 additional job cuts by 2035, taking its total planned reductions to 9,000.
Stripping out impairment tests and remeasurements, Porsche SE’s adjusted group result after tax stood at €949m for the six months to 30 June 2026, compared with €1.11bn in the same period last year.
Porsche SE management board chairman Hans Dieter Pötsch said: “The Volkswagen Group is at a historic crossroads. For the sake of the company and its sustainable competitiveness, everyone must now step up and take responsibility.
“The longer decisions are delayed, the bigger the problems will become. The focus must now be solely on what is necessary from a business and economic perspective. All other considerations must be secondary.”
