STUTTGART (dpa-AFX) - Sports car manufacturer Porsche and the works council have held initial talks about tightening the Swabian company's austerity measures. At the beginning of the year, both sides agreed on immediate measures to reduce personnel costs for the current year, a company spokeswoman said. At that time, it was already announced that talks on a future package would be initiated.
"This is intended to make Porsche even more efficient in the medium and long term," the spokesperson said. The talks are focusing on a wide range of approaches and the clear goal of making Porsche fit for the future. According to information from the German Press Agency, in addition to further job cuts, job security is also likely to be up for debate. It is valid until the end of July 2030.
The works council would like to extend it. However, management is reportedly considering letting it expire. No official information has been released about the content of the talks or the timetable. The Porsche spokeswoman simply said: "We are conducting the talks respectfully, on an equal footing and confidentially. We will communicate the outcome in due course."
According to earlier information, job security applies to approximately 23,000 employees at the main plant in Zuffenhausen, the development center in Weissach, and several smaller locations. If the measure were to expire after that, redundancies for operational reasons would again be possible at the Swabian company. This would not apply to the plant in Leipzig, where negotiations are always conducted separately.
1,900 jobs are to be cut by 2029
Employment security agreements usually apply for several years and rule out redundancies for operational reasons. They have been common practice in the German automotive industry for decades. At Porsche, the agreement was last extended in 2020. In the spring, the carmaker had already announced the socially acceptable reduction of 1,900 jobs in the Stuttgart region by 2029. In addition, temporary positions were not to be extended.
The company, which is majority-owned by the VW Group, has been in rough waters for some time. Porsche CEO Oliver Blume attributed this primarily to a "crisis in the general conditions." In China, he said, the market segment for expensive luxury products had literally collapsed in a short period of time. Added to this were the situation in the US and the sluggish transition to e-mobility.
Turbulent year for Porsche
The carmaker's problems were reflected in its latest sales figures. The significant slowdown in business in China in particular led to a decline. In the first nine months of the year, a good 212,500 vehicles were sold – around six percent less than in the same period last year.
In view of the billions in costs incurred by the strategic shift back to building combustion engines, Porsche's management expects significantly lower profits this year. The costs for the corporate restructuring amount to 3.1 billion euros, as Porsche announced in mid-September. Several executive board positions have already been filled this year, and there is speculation about the possible departure of Porsche CEO Oliver Blume. /ols/DP/zb
