Home Technology peripherals It Industry Cancel Porsche car distribution benefits! Volkswagen executives' new policies spark lawsuits

Cancel Porsche car distribution benefits! Volkswagen executives' new policies spark lawsuits

Jul 04, 2024 am 09:36 AM

According to news on July 3, the Volkswagen Group recently announced a major decision aimed at cutting costs, officially canceling the traditional benefit of providing luxury brand cars such as Porsche as official cars for the group's top managers. This news quickly caused an uproar in the industry. Some executives expressed strong dissatisfaction with this, and some individuals have chosen to file a lawsuit against this change measure through legal channels. Insiders revealed that in the past period, some senior executives lacked due care and respect when using company-issued cars. When the vehicles were returned, they were often in poor condition, showing obvious signs of rough driving. Against the background of the group's full efforts to promote cost-saving strategies, such irresponsible behavior towards company assets cannot be tolerated, which ultimately led to the birth of this change decision.

Cancel Porsche car distribution benefits! Volkswagen executives new policies spark lawsuits

Volkswagen adjusts car policy for senior executives

Volkswagen’s official spokesperson officially confirmed the policy adjustment, saying:

In order to optimize the overall cost structure, the company has made the difficult decision to stop providing Porsches to senior executives. and other luxury brand cars as work cars.

It is estimated that the new policy will affect more than 200 Volkswagen Group senior managers at the Wolfsburg headquarters and is expected to save millions of euros every year.

Except for Porsche brand executives

However, the policy adjustment does not cover all brand executives. The management and board members of the Porsche brand can still continue to drive Porsches as work vehicles. The company explained that these people are responsible for shaping the future of the Porsche brand, and it is crucial to experience its own products first-hand.

Employee dissatisfaction and lawsuits

At the beginning of the year, Volkswagen notified affected employees that it would cancel the high-end car work car benefits. Some executives expressed dissatisfaction with this change and even filed a lawsuit with the Braunschweig Labor Court in an attempt to protect their vested interests.

In addition, dozens of employees questioned the company’s cancellation of salary payment plans, intensifying the atmosphere of internal protests against austerity policies.

Other options

The analysis points out that although the Porsche brand is valuable, other brands such as Audi also offer luxury models. Affected managers may still have other options. Volkswagen board members revealed that executive compensation levels are enough to buy Porsche cars on their own.

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