Volkswagen Cuts Costs by Eliminating Free Porsche Company Cars for Executives

Overview

Company cars are a common perk for employees, especially when they come from a luxury brand like Porsche. However, Volkswagen recently made the decision to cut costs by removing this benefit for around 200 executives, sparking lawsuits and protests.

Cost-Cutting Measures

Volkswagen’s move to eliminate free Porsche company cars for high-ranking officials is part of a group-wide cost-cutting initiative. The decision has not been well-received by the affected employees, who are now exploring alternative options such as Audi vehicles as their new “premium” choice.

Impact

Sources within the VW Group have reported instances of expensive vehicles, including Porsches, being returned in poor condition, prompting the need for stricter cost-saving measures. The decision is expected to save the brand millions of dollars annually.

Legal Challenges

Several lawsuits have been filed against the ban on Porsche company cars, with employees contesting the cancellation of promised salary payments. Despite the backlash, Porsche managers and board members will still have access to company cars from the Stuttgart brand.

Future Outlook

While Porsche remains one of the most expensive brands within the VW Group, Audi offers a range of premium vehicles that may be suitable for the downgraded executives. The affected employees, according to a VW board member, have salaries that could afford them a Porsche on their own.

Conclusion

In conclusion, Volkswagen’s decision to eliminate free Porsche company cars for executives is a significant cost-saving measure that has sparked controversy within the company. The affected employees are exploring their options while the brand aims to navigate through its billion-dollar savings program.