This Wednesday the investors asked the CEO of Porsche, Oliver Blume, who also directs the Volkswagen (VW) matrix, to leave one of their positions, since the weakness in China and the tariff challenges in the United States forced the manufacturer of sports car to cut their perspectives.
Last month, Porsche announced that their margins collapsed in the first quarter and offered a more pessimistic prognosis for the year due to a 42% drop in sales in China in the first quarter of 2025, a slower transition towards electric cars and US tariffs.
Blume faced frustrated investors in the Annual Shareholders’ Board, and some criticized their decision to remain in charge of both companies.
“The independent management of both groups is, in fact, impossible if a single person manages both,” said Hendrik Schmidt, an expert in DWS Corporate Governance, Deutsche Bank unit.
He added that the double function was causing discounts on the price of Porsche shares.
Blume argued in the past that his position was a formula for success and that he would not last forever.
“Leave a position on the Council,” said Ingo Speich, sustainability director of Deka Investment.
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Porsche, who in his stock debut in 2022 had an assessment higher than that of Volkswagen; He fell out of favor and his actions collapsed about 45%.
Investors urged to act quickly at Porsche’s problems in the main markets, China and the United States.
“Porsche is in a difficult situation, among the voltage spotlights of China and the United States,” Speich said, adding that the company had not given answers on how it planned to solve the situation in China.
“Porsche must be like its products: fast and powerful, but safe and attractive,” said Schmidt, of DWS.
In the Board of Shareholders, Blume recognized the challenges.
“Last year we had strong winds against. Now we are living a violent storm,” he said, adding that the Chinese market had collapsed. “We have it perfectly clear: they expect more from Porsche. Of course. We too,” he said.
Investment funds cannot influence the voting of the Board of Shareholders, since they only quote preferential actions without the right to vote. The Matrix VW and Porsche Automobil Holding, the Holding of the Porsche and Piech families, have control.
With Reuters information.
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