Porsche begins negotiations to terminate its sales chief and CFO contracts
As the German luxury carmaker struggles to raise declining profitability and dismal sales in China, Porsche (P911_p.DE) said in a statement late on Saturday that its supervisory board has begun discussions to terminate the contracts of sales leader Detlev von Platen and finance director Lutz Meschke early.
The discussions were originally reported in the widely read German newspaper Bild, and Porsche issued a comment soon after.
Porsche refused to provide Reuters with any other comments.
According to the publication, both managers have come under fire for the company’s subpar performance and low share price.
The automaker announced cost-cutting measures in October as it grapples with a slower-than-expected shift to electric vehicles, a deteriorating economy, and more competition in China, the largest automotive market in the world.
After making their debut in September 2022, Porsche’s shares fared well at first, even surpassing their parent company Volkswagen (VOWG_p.DE). However, on Friday, the last trading day, they closed 30% below the IPO price.
Volkswagen is currently undergoing a significant reorganization and intends to lay off around 35,000 employees in the future in an effort to catch up to its less expensive Chinese competitors in the face of sluggish European demand and a slower-than-anticipated uptake of electric vehicles.
