Porsche warns workers of cost-cuts amid 'serious' situation
Any further steps would come on top of the 1,900 job cuts the company announced in February while Volkswagen, Porsche's parent group, is already in the process of cutting 35,000 jobs by 2030.
"Our business model, which sustained us for many decades, no longer works in its current form," Porsche management said in a letter to employees, excerpts of which were shared with AFP.
"Our operating conditions have deteriorated dramatically in a short period of time," the letter read.
Negotiations are expected in the second half of the year "to assure the long-term future of the company", the letter added without going into specifics of possible measures.
Fierce competition in China from domestic players, tariffs imposed by US President Donald Trump and the dollar weakening versus the euro were all weighing on Porsche, bosses said.
The cost of ramping up electric vehicle production amid tepid demand was also hurting the company, they added.
"The situation remains serious and the sector is evolving very dynamically," the letter said.
Porsche in April slashed its profit and sales forecasts for the year, citing "continued challenging market conditions" in China.
Porsche's vehicle deliveries in China fell 28 per cent in the first half of the year and six per cent worldwide.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malaysia Sun
2 hours ago
- Malaysia Sun
Iran agrees to resume nuclear talks with European states media
France, Germany, and the UK are threatening to reimpose sanctions on the Islamic Republic unless it agrees to a deal in August Iran, France, Germany, and the UK have agreed to resume talks regarding Tehran's nuclear program next week, Tasnim News Agency reported on Sunday, citing an anonymous source. The time and location are still under negotiation, but the talks are expected to take place at the level of deputy foreign ministers from Iran and the three European countries, according to the agency. French Foreign Minister Jean-Noel Barrot warned last week that the three European countries - known collectively as the E3 - would reactivate UN sanctions on Iran unless a nuclear deal is reached by the end of next month. "France and its partners are... justified in reapplying global embargoes on weapons, banks, and nuclear equipment that were lifted 10 years ago," he told reporters in Brussels on Tuesday. He added that this would be done "by the end of August at the latest." The E3 have the ability to use a 'snapback' mechanism to reinstate sanctions lifted from Iran under the Joint Comprehensive Plan of Action (JCPOA) in 2015, in exchange for the curtailment of the country's nuclear program. The original guarantors of the agreement were the E3 countries, Russia, China, the US, and EU. However, during his first term in office, President Donald Trump unilaterally withdrew the US from the agreement. Iranian Foreign Minister Abbas Araghchi has urged the E3 states and the EU to "act responsibly" and stop using threats, arguing that they have "no moral or legal basis" for using the snapback mechanism. "It was the US that withdrew from a two-year negotiated deal - coordinated by the EU in 2015 - not Iran," he said in a Telegram post on Friday. "It was the US that left the negotiation table in June this year and chose a military option instead." READ MORE: Iran sets terms for resuming nuclear talks US-Iran nuclear talks brokered by Oman collapsed last month shortly after Israel attacked Iran on June 13, claiming it was preempting the development of a nuclear bomb - an accusation that the Islamic Republic has denied. The US joined the conflict on June 22 and bombed three major Iranian nuclear facilities. (
The Sun
7 hours ago
- The Sun
Oliver Solberg wins first WRC rally in Estonia
SWEDEN's Oliver Solberg claimed his first-ever World Rally Championship (WRC) victory at the Rally of Estonia, marking a significant milestone in his career. The 23-year-old, son of 2003 WRC champion Petter Solberg, dominated the high-speed gravel stages from Friday onwards, finishing 25.2 seconds ahead of local favourite Ott Tanak. Solberg, driving a Toyota in place of the absent eight-time champion Sebastien Ogier, showcased remarkable composure throughout the event. Reigning champion Thierry Neuville of Belgium secured third place, rounding out the podium. 'After everything, so many years trying and trying and trying and dreaming, and me and (co-driver) Elliott (Edmondson) finally made it,' an emotional Solberg said. He credited Toyota for their support, adding, 'I've never had such a good time in my life.' The victory also reshuffled the WRC standings, with Tanak overtaking Elfyn Evans to lead the championship by a single point. Evans finished sixth in Estonia, struggling to match the pace of the frontrunners. - AFP
The Star
8 hours ago
- The Star
Bursa Malaysia is most likely to continue its upward trend this week
KUALA LUMPUR (Bernama): Bursa Malaysia is likely to maintain its upward bias from Monday (July 21), building on the renewed buying interest seen over the past two sessions, said UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan. He foresees the FTSE Bursa Malaysia KLCI (FBM KLCI) trading within the 1,540-1,550 range, potentially retesting levels recorded prior to the deadline of the reciprocal tariff deferral. "While (the United States) President Donald Trump's administration has yet to announce any formal amendments to Malaysia's tariff arrangement, the precedent set by recent favourable outcomes for Indonesia and Vietnam lends credence to the prospect of Malaysia's 25 per cent tariff being reviewed,' he told Bernama. Furthermore, he said the stronger-than-expected second-quarter gross domestic product figure should offer a constructive backdrop for market sentiment in the week ahead. "In our assessment, the combination of resilient domestic growth and compelling equity valuations, particularly within a selectively risk-on environment is likely to continue attracting foreign investor interest into the Malaysian market,' he added. According to the Statistics Department Malaysia (DoSM), Malaysia's economy is forecast to grow by 4.5 per cent in the second quarter of 2025 (2Q 2025) based on advance gross domestic product (GDP) estimates, slightly outpacing the previous quarter's 4.4 per cent. Growth is expected to be driven by robust domestic demand amid global headwinds. For the week just ended, the benchmark index fell 10.21 points to 1,525.86 from 1,536.07 a week earlier. The FBM Emas Index declined 63.75 points to 11,479.83, the FBMT 100 Index dropped 67.05 points to 11,241.69, the FBM Emas Shariah Index slid 14.60 points to 11,537.87, the FBM 70 Index shed 63.63 points to 16,697.72, while the FBM ACE Index rose 133.62 points to 4,671.79. By sector, the Financial Services Index dipped 253.30 points to 17,354.83, the Plantation Index reduced 8.56 points to 7,441.89 and the Energy Index went up 1.51 points to 739.13. Weekly turnover narrowed to 15.53 billion units worth RM11.77 billion from 16.21 billion units worth RM11.43 billion in the previous week. Main Market volume fell to 6.73 billion units valued at RM10.07 billion, compared with 6.99 billion units valued at RM10.02 billion previously. Warrant turnover depreciated to 6.83 billion units worth RM966.72 million from 7.82 billion units worth RM911.38 million a week earlier. ACE Market volume widened to 1.97 billion units valued at RM729.96 million versus 1.41 billion units valued at RM490.78 million previously. - Bernama
