Porsche considers terminating CFO, sales chief contracts amid poor sales
What's the story
German luxury car maker, Porsche, is considering firing its Chief Financial Officer Lutz Meschke and Sales Executive Detlev von Platen.
The early termination of their contracts comes after the company's declining sales and disappointing performance in China.
The first report about the possible firings was published by German newspaper Bild before being confirmed by Porsche later.
Financial woes
Porsche's financial struggles and market challenges
Porsche has been under increased scrutiny amid stagnation in its financial results and a decline in its stock price, Bild reported.
The company is dealing with a sluggish global economy, intensified competition from Chinese car manufacturers, and slower-than-expected growth in the electric vehicle (EV) market.
These challenging conditions have led to Porsche's current predicament.
Both executives have faced criticism for the company's performance.
Strategic response
Porsche's cost reduction plans and stock market performance
Amid declining demand in the Chinese market and rising global EV competition, Porsche began cost-cutting measures in October 2024.
Despite a promising stock market debut in September 2022, Porsche's share values have since dropped 30% below their IPO price.
The decline has erased any early market outperformance against its parent company Volkswagen in terms of capitalization.
Corporate overhaul
Volkswagen's restructuring and Porsche's leadership changes
Volkswagen is undergoing a major business overhaul to address the ongoing industry challenges.
The German automotive giant has announced plans to lay off over 35,000 employees in a bid to compete with low-cost Chinese EV rivals and cope with slower-than-expected growth in the European EV market.
Meanwhile, Porsche is revamping its leadership team as part of its strategy to sail through these market challenges.