Volkswagen’s majority owner backs deeper capacity and workforce reductions as the automaker faces declining profitability and a growing cost gap with rivals. On the Dash:Volkswagen is preparing additional capacity and cost reductions as it works to improve profitability and competitiveness in Europe. Rising competition from Chinese automakers, particularly BYD, is adding pressure on Volkswagen to improve pricing, costs and product competitiveness. Porsche Automobil Holding SE urged Volkswagen Friday to quickly implement cost reductions and address excess capacity. In response, Porsche SE is seeking to diversify its investments beyond the automotive sector, exploring opportunities in defense, aerospace, and drone companies.