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Porsche-Piech family diversifies investments away from struggling car businesses
Billionaire family in control of Volkswagen and Porsche to further diversify from auto sector
Porsche SE, the Porsche-Piech family’s investment vehicle, said late on Tuesday that its portfolio of assets would be “dynamically expanded with further investments” to “further diversify the company”.
The decision comes as both VW and sport-car maker Porsche AG grapple with drastically lower sales in China, squeezed profits and contentious cost-cutting measures in their domestic German market, putting pressure on dividend payments to shareholders.
. . .
The plans were announced on Tuesday alongside a reshuffle of Porsche AG’s board, following an unexpected decision earlier this month to end the contracts of the carmaker’s chief financial officer, Lutz Meschke, and Detlev von Platen, the group’s head of sales and marketing, early.
The move followed a power struggle between Meschke and chief executive Oliver Blume, who has come under growing scrutiny in his dual role as head of both Porsche AG and VW, and came amid concerns about the luxury brand’s approach to electric cars and sliding sales.
Meschke will be replaced by Jochen Breckner, previously head of Porsche AG’s corporate development, while Matthias Becker will take over from von Platen, having previously been in charge of sales in emerging markets.
Questions had loomed over how the sudden decision to terminate Meschke’s contract with Porsche AG would influence his position at parent company Porsche SE. He has been a board member responsible for investments since 2020, granting him a close relationship with the Porsche-Piech family.
Porsche SE on Tuesday confirmed that Meschke would stay in his role at the parent company and “push forward the activities in the portfolio segment with full commitment”.
. . .
The troubles at VW and Porsche have spelled bad news for the Porsche-Piech family, whose wealth is largely tied up in the two automotive companies. Porsche SE warned last year that it expected to write down the book value of its stake in VW by roughly €20bn — or 40 per cent — with a writedown of up to €3.5bn for Porsche AG.
Billionaire family in control of Volkswagen and Porsche to further diversify from auto sector
Porsche SE, the Porsche-Piech family’s investment vehicle, said late on Tuesday that its portfolio of assets would be “dynamically expanded with further investments” to “further diversify the company”.
The decision comes as both VW and sport-car maker Porsche AG grapple with drastically lower sales in China, squeezed profits and contentious cost-cutting measures in their domestic German market, putting pressure on dividend payments to shareholders.
. . .
The plans were announced on Tuesday alongside a reshuffle of Porsche AG’s board, following an unexpected decision earlier this month to end the contracts of the carmaker’s chief financial officer, Lutz Meschke, and Detlev von Platen, the group’s head of sales and marketing, early.
The move followed a power struggle between Meschke and chief executive Oliver Blume, who has come under growing scrutiny in his dual role as head of both Porsche AG and VW, and came amid concerns about the luxury brand’s approach to electric cars and sliding sales.
Meschke will be replaced by Jochen Breckner, previously head of Porsche AG’s corporate development, while Matthias Becker will take over from von Platen, having previously been in charge of sales in emerging markets.
Questions had loomed over how the sudden decision to terminate Meschke’s contract with Porsche AG would influence his position at parent company Porsche SE. He has been a board member responsible for investments since 2020, granting him a close relationship with the Porsche-Piech family.
Porsche SE on Tuesday confirmed that Meschke would stay in his role at the parent company and “push forward the activities in the portfolio segment with full commitment”.
. . .
The troubles at VW and Porsche have spelled bad news for the Porsche-Piech family, whose wealth is largely tied up in the two automotive companies. Porsche SE warned last year that it expected to write down the book value of its stake in VW by roughly €20bn — or 40 per cent — with a writedown of up to €3.5bn for Porsche AG.
